SoftBank has sold 1.21 crore rights entitlements in Ola Electric Mobility as the electric two-wheeler manufacturer attempts to raise nearly ₹1,000 crore through a rights issue. The transactions were executed on October 22 and 23, 2026, by SVF II Ostrich (DE) LLC, an investment vehicle associated with Japan’s SoftBank Group. The sales represent approximately 27.9% of the entitlements the entity was estimated to receive based on its shareholding.
The development comes as Ola Electric faces pressure from declining revenue, continued losses and intensifying competition in India’s electric two-wheeler market. While SoftBank has sold part of its opportunity to subscribe to new shares, Motilal Oswal Financial Services and an associated investment vehicle have applied for a combined 2.39 crore shares in the ongoing issue. The contrasting moves have drawn attention to investor participation as Ola Electric seeks additional capital to support its business.
Key Takeaways
- SoftBank’s sale: Its investment vehicle sold 1.21 crore Ola Electric rights entitlements across October 22 and 23.
- ₹1,000 crore fundraising: Ola Electric is offering approximately 37.03 crore partly paid-up shares at ₹27 each.
- Motilal Oswal participation: Two associated entities applied for a combined 2.39 crore shares on the first day of the issue.
- Business pressure: Ola Electric’s June-quarter FY27 revenue fell 45% year over year to ₹455 crore.
- Rights issue deadline: The offer opened on October 22 and is scheduled to close on October 30, 2026. The on-market trading period for rights entitlements ends on October 26.
- Important distinction: Selling rights entitlements is not the same as selling existing shares in the company.
What Did SoftBank Sell?
According to stock exchange data cited by The Economic Times, SVF II Ostrich (DE) LLC sold a total of 1.21 crore Ola Electric rights entitlements over two trading sessions.
The transactions were split into two parts:
| Transaction date | Rights entitlements sold | Price per entitlement |
|---|---|---|
| October 22, 2026 | 82.93 lakh | ₹3.64 |
| October 23, 2026 | 38.08 lakh | ₹2.28 |
| Total | 1.21 crore | — |
The prices represent the amounts received for the entitlements, not the ₹27 price of the new shares offered under the rights issue.
As of September 2026, SVF II Ostrich held approximately 54.15 crore Ola Electric shares, equivalent to an 11.70% stake. Under the company’s rights entitlement ratio, the investment vehicle was estimated to qualify for approximately 4.33 crore rights shares.
Its sale of 1.21 crore entitlements therefore represented around 27.9% of that estimated entitlement. The transactions do not, by themselves, establish that SoftBank sold its underlying Ola Electric shares or that it has decided against participating in the remaining portion of the rights issue.
What Is Ola Electric’s ₹1,000 Crore Rights Issue?
Ola Electric announced a rights issue to raise nearly ₹1,000 crore by offering new partly paid-up equity shares to eligible existing shareholders.
The company finalized the issue terms in October 2026, setting the price at ₹27 per share. The offer represents a discount to the prevailing market price when the terms were announced.
| Rights issue detail | Information |
|---|---|
| Target fundraising | Approximately ₹1,000 crore |
| Issue price | ₹27 per share |
| Number of shares offered | Approximately 37.03 crore |
| Rights entitlement ratio | 2 shares for every 25 shares held |
| Initial payment | ₹16.20 per share |
| Remaining payment | ₹10.80 per share |
| Issue opening date | October 22, 2026 |
| Scheduled closing date | October 30, 2026 |
| Last date for on-market entitlement transfers | October 26, 2026 |
The partly paid structure means investors do not have to pay the entire ₹27 immediately. Eligible applicants initially pay ₹16.20 per share, while the remaining ₹10.80 is payable later under the company’s terms.
If fully subscribed and all amounts are ultimately collected, the issue is expected to raise approximately ₹999.74 crore.
The company has previously raised capital through a qualified institutional placement, or QIP, collecting around ₹780 crore in June 2026. The latest rights issue is another effort to strengthen its financial position.
What Are Rights Entitlements, and Why Does the Sale Matter?
Rights entitlements give eligible shareholders the opportunity to apply for additional shares in proportion to their existing holdings. In a tradable rights issue, shareholders can generally exercise their entitlement or transfer it to another investor during the permitted trading window.
This creates a choice for shareholders who do not want to commit additional capital. Instead of subscribing to all the shares available to them, they can sell some or all of their entitlements, subject to the offer’s terms.
For SoftBank, selling the entitlements allowed it to monetize part of its subscription opportunity rather than commit the full amount that exercising those rights would require. The sale should not automatically be interpreted as a complete exit from Ola Electric.
The transactions also illustrate why rights entitlements and ordinary shares must be distinguished. An entitlement provides an opportunity to apply for new shares; it is not itself an existing fully paid-up Ola Electric share.
Motilal Oswal-Linked Entities Apply for 2.39 Crore Shares
While SoftBank sold part of its entitlements, Motilal Oswal Financial Services and Calliope Capital Advisors LLP applied for a combined 2.39 crore shares on the opening day of the rights issue, according to The Economic Times.
The reported applications were divided as follows:
| Applicant | Shares applied for |
|---|---|
| Motilal Oswal Financial Services | 1.28 crore |
| Calliope Capital Advisors | 1.10 crore |
| Combined | 2.39 crore |
The entities acquired rights entitlements from promoter-group shareholders ANI Technologies and Indus Trust before applying for shares.
The participation is notable because Motilal Oswal-linked funds had also invested in Ola Electric’s June 2026 QIP. However, applications for shares should not be confused with completed allotments, and the final amount raised will depend on the outcome of the rights issue.
According to Moneycontrol, applications had been received for 13.48 crore shares by the end of October 23, representing 36.4% of the total shares on offer. This was an early subscription snapshot, not the final outcome of the issue.
Ola Electric Faces Declining Revenue and Continued Losses
The fundraising comes as Ola Electric attempts to stabilize its operations in a competitive electric two-wheeler market.
The company reported operational revenue of ₹455 crore in the first quarter of FY27, down from ₹828 crore in the same period a year earlier. Its net loss narrowed to ₹336 crore from ₹428 crore.
| Financial metric | Q1 FY27 | Q1 FY26 | Year-on-year change |
|---|---|---|---|
| Operational revenue | ₹455 crore | ₹828 crore | Down approximately 45% |
| Net loss | ₹336 crore | ₹428 crore | Loss narrowed by approximately 21.5% |
The narrowing loss is a positive change in the reported quarterly figures, but the revenue decline shows that the company continues to face significant operating challenges.
The pressure is also visible in the company’s full-year performance. Moneycontrol reported that Ola Electric’s revenue from operations fell to ₹2,253 crore in FY26 from ₹4,514 crore in FY25. Its net loss for FY26 stood at ₹1,833 crore, while vehicle deliveries declined 43.5% to 1,73,794 units.
These figures help explain why additional capital matters. The company must manage its operating expenses, maintain its product and service network and continue investing in its electric vehicle and battery-related businesses while working to improve sales.
What Happens Next for the Rights Issue?
The rights issue is scheduled to close on October 30, 2026, subject to any permitted extension announced by the company. The last date for on-market transfers of rights entitlements is October 26.
Investors who receive entitlements must follow the offer instructions and deadlines if they intend to subscribe. Entitlements that are neither exercised nor transferred within the applicable period may lapse under the issue terms.
The final subscription level, allotment and amount ultimately collected will provide a clearer picture of the fundraising’s outcome. The participation of existing investors and buyers of transferred entitlements will be important in determining how much capital Ola Electric secures.
The proceeds could help the company support its balance sheet and business priorities, but raising capital alone will not resolve declining revenue or restore market share. Execution, sales recovery, cost management and cash generation will remain important factors in its financial performance.
The Bigger Picture
SoftBank’s decision to sell part of its rights entitlements highlights the different ways investors can respond to a company’s fundraising. A shareholder may choose to contribute more capital, sell the opportunity to subscribe or retain its existing investment without exercising every available entitlement. The transaction alone does not establish the investor’s broader intentions.
For Ola Electric, the central issue is whether the new funds can help it navigate a difficult operating period while rebuilding sales momentum and managing losses. The response from institutional and other eligible investors will offer insight into participation in the rights issue, but the company’s longer-term position will depend on financial and operational progress.
FAQs
1. How many Ola Electric rights entitlements did SoftBank sell?
SoftBank’s investment vehicle, SVF II Ostrich (DE) LLC, sold 1.21 crore rights entitlements on October 22 and 23, 2026.
2. What is Ola Electric trying to raise through the rights issue?
Ola Electric is seeking to raise approximately ₹1,000 crore by issuing around 37.03 crore partly paid-up shares at ₹27 each.
3. Did SoftBank sell its existing Ola Electric shares?
The reported transactions involved rights entitlements, which give shareholders the opportunity to apply for new shares. They should not be treated as proof that SoftBank sold the same number of its existing shares.
4. Why did Motilal Oswal-linked entities apply for Ola Electric shares?
Motilal Oswal Financial Services and Calliope Capital Advisors applied for a combined 2.39 crore shares, acquiring entitlements from promoter-group shareholders. The applications indicate participation in the rights issue but do not, on their own, confirm final allotment.
5. When does Ola Electric’s rights issue close?
The issue is scheduled to close on October 30, 2026. The last date for on-market trading and transfer of rights entitlements is October 26, 2026.
Looking Ahead
Ola Electric’s rights issue will be an important near-term test of its ability to secure fresh capital amid continued pressure on revenue and market share. The final subscription figures and the amount ultimately collected will show how much funding the company receives through the offer.
The larger question is whether that capital can support a sustained operational recovery. Investors will likely continue to watch vehicle registrations, revenue trends, losses, cash flow and the company’s progress in scaling its electric vehicle and battery businesses. The fundraising provides additional capital, but the company’s execution will determine whether it can translate that support into stronger performance.
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