Electric two-wheeler company, Ola Electric Mobility Ltd, on Thursday (May 22) said its board has approved a proposal to raise up to ₹1,700 crore through the issuance of non-convertible debentures (NCDs) or other eligible debt securities.The fundraising will be done in one or more tranches through private placements or other permissible methods under applicable laws. The decision was taken at a board meeting held earlier in the day. The company stated that the issuance would fall within the borrowing limits already approved by shareholders.
According to the regulatory disclosure, the debt instruments may include term loans, working capital facilities, NCDs, or other debt securities as determined by the board. The structure, timing, and terms of the issuance will be decided based on market conditions and funding requirements.
Also Read: Ola Electric responds to reports of Maharashtra showroom closures
Last month, the Maharashtra Transport Department ordered the closure of over 100 Ola Electric Mobility Ltd stores across the state for operating without mandatory trade certificates, according to a show cause notice seen by CNBC-TV18.As many as 107 out of 131 Ola Electric showrooms in Maharashtra were found to be operating without the required certification, the department said in its notice. Authorities have issued 104 show cause notices and ordered the immediate suspension of showroom operations that remain non-compliant.To date, only 43 such stores have been closed and 214 vehicles seized, the directive from the Joint Transport Commissioner stated, adding that local Regional Transport Offices (RTOs) must act within 24 hours to deactivate login credentials of defaulting dealerships and update their enforcement status.Also Read: Ola Electric Mobility shares surge 12%, back near IPO price on new launchesShares of Ola Electric Mobility Ltd ended at ₹51.50, up by ₹0.14, or 0.27%, on the BSE.
