Ola Electric founder Bhavish Aggarwal has decided to support the company's upcoming Rs 1000 crore employee stock option plan (ESOP) round by pledging 4.32% of his stake in the electric vehicle manufacturer to finance his participation.
This move followed shortly after the Ola Electric board of directors approved a plan to raise new capital through partially paid shares and appointed Deepa Bansal as the new Chief Compliance Officer to strengthen corporate governance.
According to documents filed with the stock exchange on Sunday, Aggarwal pledged 20 crore shares in exchange for unsecured debt obligations issued by Krutrim Data Centre Private Limited—a non-core promoter company owned by Aggarwal—to CTL Trusteeship Limited. The company clarified that the shares are not being sold, there are no other liens on his assets, and Aggarwal will subscribe to the issuance under the same terms as all other shareholders.
Unlike many tech founders whose stakes rapidly dilute after going public, Aggarwal and his group of promoters still hold approximately one-third of Ola Electric. By subscribing to the ESOP round, Aggarwal ensures the preservation of his ownership stake once the new shares enter the market.
The influx of fresh capital comes at a critical time for the Bengaluru-based EV maker. Increased competition from traditional brands such as TVS Motor, Bajaj Auto, and Hero MotoCorp, as well as rival Ather Energy, has recently seen Ola Electric's ranking drop to fifth in monthly vehicle registrations. In the first quarter of the fiscal year 27, revenue fell to Rs 455 crore from Rs 828 crore the previous year, although losses decreased to Rs 336 crore.
Following the raising of Rs 780 crore through a qualified institutional placement in June, the Rs 1000 crore ESOP round provides Ola Electric with an additional financial cushion while defending its market position.
