Ola Electric Will Raise ₹2,000 Cr. Via Stake Sale In Its Battery Unit

Electric two-wheeler maker Ola Electric is planning to raise approximately ₹2,000 crore by selling a stake in its battery subsidiary Ola Cell Technologies (OCT). This action is aimed at improving its balance sheet, expanding domestic lithium-ion cell manufacturing, and building a more integrated EV ecosystem in India.

According to reports, the fundraising could attract financial investors interested in India’s rapidly growing electric mobility and energy storage sectors.

Investment Banks Appointed To Manage The Deal

Ola Electric has roped in two investment banks to manage the stake sale:

• Avendus Capital

• Motilal Oswal Financial Services

These firms will help identify potential investors and structure the transaction.

The deal is also expected to help establish a market valuation for the battery subsidiary, which is becoming an increasingly important part of Ola Electric’s long-term strategy.

Focus On Domestic Battery Manufacturing

Ola Cell Technologies already operates a facility in Tamil Nadu that makes lithium-ion battery cells. The plant currently has an operational capacity of about 1.5 GWh.

The company plans to expand this capacity 4x to 6 GWh by the end of the current financial year.

Gigafactory Investment And Localisation Push

The battery plant forms part of a larger gigafactory project developed by Ola Electric. The project has already involved an investment of around ₹3,500 crore.

As soon as it becomes fully operational, it will be making lithium-ion battery cells used in:

• Electric two-wheelers

• Other electric vehicles

• Energy storage systems

India currently relies heavily on imported battery cells for electric vehicles. Building local manufacturing capabilities is therefore considered crucial for the long-term growth of the country’s EV industry.

Ola’s Current And Future Outlook

In January, Ola said that it would cut about 5% of its workforce as part of a restructuring plan to become a leaner and more efficient company. The firm is increasing automation and focusing on discipline to improve long-term profitability.

The company has invested about ₹5,300 crore in manufacturing, battery technology, and research and development.

However, sales have been under pressure through much of FY2026, with rivals like Ather Energy, TVS Motor, and Bajaj Auto doing better. Analysts say the company now needs to strengthen its service network, stabilise its leadership team, and improve product reliability to turn the business around.

Also Read - Banks See Sharpest Drop In MFI Portfolios In Q3 FY26 Amid Tightening Credit

Investor Takeaways

For investors, the planned stake sale shows the importance of battery manufacturing and how it is becoming one of the most strategically important segments of the EV value chain.

Expansion by Ola Electric into domestic battery production also highlights the overall push to localise critical EV components in India.

Sources:

Moneycontrol

Financial Express