Ola Electric's AGM: Shareholders approve reallotment of IPO funds

Ola Electric on Friday said it has secured shareholders' approval on the reallocation of funds raised through IPO, unlocking capital to drive the next phase of growth, and further strengthening the balance sheet.

The Bengaluru-based firm on Friday concluded its first AGM since going public in 2024.

As per exchange filings, 99 per cent of shareholders voted in favour of the resolution to reallocate IPO proceeds, signalling investor trust in the company and its long-term vision.

This will fully meet the company's near-term organic growth capital requirements, it added.

In order to fuel the next phase of growth for the business, the company has strategically reallocated funding for organic growth initiatives, general corporate purposes, and debt repayment, it said.

After the reallocation of funds, the unutilised amount is as follows: ₹ 1,049 crore for R&D investment, ₹ 901 crore for organic growth initiatives, ₹ 395 crore for debt repayment/prepayment, and ₹ 248 crore for general corporate purposes.

Apart from the approval for reallocation of IPO proceeds, shareholders also passed several other key resolutions at the AGM.

Ola Electric Mobility went public on August 9, 2024.

Shares of the company closed 3.38 per cent down at ₹ 47.18 apiece on the BSE.