SynopsisOla Electric has launched a qualified institutional placement (QIP) with a floor price of Rs 37.74 per share to raise funds amidst challenges like slowing sales and shrinking market share. The company aims to navigate these issues by doubling down on localization and vertical integration, with a focus on EV products and cell manufacturing.Electric vehicle (EV) maker Ola Electric Mobility launched its qualified institutional placement (QIP) on Monday and set a floor price of Rs 37.74 per share, according to a stock exchange filing.The company's fund raising committee approved the launch on June 1 and cleared the preliminary placement document for institutional investors. The company may also offer a discount of up to 5% on the floor price in line with SEBI regulations, the filings read. QIP is a way for listed companies to raise money from large institutional investors such as mutual funds, insurance firms, sovereign funds, and foreign portfolio investors, without going through a lengthy public issue process.The fundraising comes at a time when Ola Electric is navigating slowing sales, shrinking market share, and continued losses in the electric two-wheeler market.On May 14, the company announced a Rs 2,000 crore investment in its wholly-owned subsidiaries focussed on electric vehicle and battery manufacturing, as it looks to double down on localisation and vertical integration.Ola reported a consolidated net loss of Rs 500 crore for the fourth quarter ended March 2026, narrowing 42.5% from Rs 870 crore in the year-ago period, aided by lower expenses. In Q3, the company had reported a loss of Rs 487 crore.For the full 2026 financial year, the company posted a consolidated net loss of Rs 1,833 crore compared with Rs 2,276 crore in FY25, while revenue from operations fell to Rs 2,253 crore from Rs 4,514 crore a year ago.Brokerages have also flagged concerns around market share erosion and cash burn. Citi slashed the target price of the stock by 18% citing persistent challenges to volume growth and rising balance sheet pressures. The company recently reported that its May vehicle registrations had risen to 14,752 units.Ola said the issue price will be determined in consultation with the book-running lead managers. “For Q1 FY27, we expect 40,000-45,000 orders and consolidated revenues of Rs 500-550 crore, nearly double Q4 levels. As volumes recover, we expect the auto business to move towards adjusted operating Ebitda and free cash flow positivity through FY27,” Aggarwal said in a letter to shareholders.The company’s focus remains on its EV products, particularly electric motorcycles and cell manufacturing, he added. Ola's shares closed at Rs 39.53 on the BSE on Monday, 4.91% lower than the previous trading session. The QIP announcement was made post market hours. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now