SoftBank Cuts Participation in Ola Electric Rights Issue as EV Maker Seeks Fresh Capital
What Happened
SoftBank, through its investment vehicle SVF II Ostrich (DE) LLC, sold about 1.21 crore rights entitlements in Ola Electric Mobility on October 22 and 23, representing roughly 28% of its estimated entitlement under the company's ongoing ₹1,000-crore rights issue. Ola Electric is offering shares at ₹27 apiece through a rights issue, while Motilal Oswal Financial Services and Calliope Capital Advisors applied for a combined 2.39 crore shares under the offer.
Key Takeaways
The transaction highlights differing investor approaches toward Ola Electric's capital raise. While SoftBank reduced its participation by selling a portion of its rights entitlements, other investors increased exposure by subscribing to the issue. The rights offering is aimed at strengthening the EV maker's capital base.