World · India Bureau
Ola Electric founder pledges stake to back rights issue
Bhavish Aggarwal has committed his own shareholding to participate in Ola Electric's capital raise, with the stake secured against debt facilities linked to his data centre venture.
LSN India ·
Ola Electric founder and chief executive Bhavish Aggarwal is backing the electric vehicle maker's rights issue by pledging his personal 4.32 per cent stake in the company. The shareholding, comprising 20 crore shares, has been pledged as security against debentures issued by Krutrim Data Centre, a separate entity within the Aggarwal-led technology conglomerate.
The pledge arrangement enables Aggarwal to fund his subscription to the rights offering without divesting his equity in Ola Electric. Krutrim Data Centre, which is developing infrastructure for artificial intelligence and data processing, issued the debentures to mobilise capital that would support the founder's participation in the vehicle manufacturer's equity raise.
The move underscores Aggarwal's commitment to Ola Electric at a time when the company is scaling operations amid rising competition in India's fast-growing electric two-wheeler and four-wheeler segments. Rights issues allow existing shareholders to maintain their proportional ownership by subscribing to new shares before they are offered to the general public.
Ola Electric, which has emerged as one of India's leading EV manufacturers, has been investing heavily in manufacturing capacity, supply chain development and technology infrastructure to support its expansion plans.