The company’s board, at a meeting held on March 18, approved the proposed variation in the use of IPO funds, subject to shareholder approval.
This marks yet another revision in the utilisation of IPO proceeds by the Bengaluru-based company after an earlier reallocation approved by shareholders in August 2025, wherein it had reduced R&D allocation while increasing the share earmarked for debt repayment and organic growth.
Of the Rs 575 crore being reallocated this time, Rs 475 crore will be used for repayment or prepayment of debt, while Rs 100 crore will be deployed towards organic growth initiatives, the filing showed.
Following this revision, the allocation towards R&D will be reduced to Rs 930 crore from Rs 1,505 crore earlier. In contrast, the total funds earmarked for debt repayment will increase to Rs 870 crore from Rs 395 crore. The allocation for organic growth initiatives will also rise to Rs 1,300.6 crore from Rs 1,200.6 crore.
According to the filing, the company had Rs 1,295.6 crore in unutilised IPO proceeds as of March 18.
The proposed changes come at a time when Ola Electric has been witnessing a sharp decline in sales volumes and market share in the electric two-wheeler segment, which is currently dominated by TVS Motor Company, Bajaj Auto, Ather Energy, Hero MotoCorp and Greaves Electric Mobility.
Earlier this week, it was reported that the company is looking to raise around Rs 2,000 crore by offering investors a stake in its subsidiary, Ola Cell Technologies, and is in discussions with sovereign wealth funds and global infrastructure investors.
The company, which made its market debut in August 2024 at a listing price of Rs 76 per share, has seen its stock plunge nearly 70% since then. On Friday, the shares opened at Rs 23.9 apiece on the BSE.
ET had reported in February that Ola Electric planned to reduce its physical store count to around 550 by the end of March, marking a pullback just a year after announcing plans to expand its retail network to 4,000 stores nationwide.
The company, which slipped out of the top five in monthly sales volumes in February, sold around 3,968 vehicles during the month, for a market share of 3.7%, according to data from the government’s Vahan portal.