Ola Electric Mobility on Monday approved the opening of its qualified institutional placement (QIP) issue and fixed a floor price of Rs 37.74 per equity share for the fund raise. The company's Fund Raising Committee approved the launch of the issue at a meeting held on June 1 and also cleared the preliminary placement document and application form to be sent to eligible qualified institutional buyers.The floor price has been determined in accordance with the pricing formula prescribed under Sebi regulations. The company said it may offer a discount of up to 5% to the floor price, subject to applicable regulations and shareholder approval.The final issue price will be decided by the company in consultation with the book-running lead managers. The fundraising exercise comes after the board had approved the proposal in October 2025, followed by shareholder approval through a special resolution in November 2025.The company has fixed June 1, 2026, as the relevant date for determining the floor price under Sebi's Issue of Capital and Disclosure Requirements regulations.A QIP allows listed companies to raise capital from institutional investors without going through a lengthy public issue process. The route is commonly used by companies seeking growth capital, balance sheet support or funding for expansion plans.The development comes at a time when Ola Electric is navigating a challenging operating environment in India's electric two-wheeler market, marked by intense competition, pricing pressures and evolving government subsidy policies.The company has been focusing on expanding its vehicle portfolio, strengthening its battery and manufacturing ecosystem and increasing the scale of its retail and service network.Shares of Ola Electric have remained under pressure since their post-listing highs as investors assessed the company's path to profitability and the pace of growth in the electric vehicle segment.The company did not disclose the total size of the QIP in its filing. The issue price and the amount to be raised will be finalized after the book-building process with institutional investors.Ola Electric said the trading window for dealing in the company's securities will remain closed until 48 hours after the determination of the issue price, in line with insider trading regulations.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)