Ola Electric is seeking nearly ₹1,000 crore from shareholders even as the electric two-wheeler maker and its founder, Bhavish Aggarwal, face a pending SEBI proceeding over allegedly misleading public disclosures. The company’s rights offer also reveals that auditors flagged the absence of mandatory internal audit systems at the company and two subsidiaries during FY26.
Against this backdrop, Aggarwal recently announced another distribution push.
“What energy our dealers have! First 150 onboarded, and it was amazing to host and interact with them in our factory!” he said in a social media communication reproduced in Ola’s October 9 stock exchange filing. The announcement did not specify how many dealer outlets were operational or their servicing capabilities.
Seeds of doubts
Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, said the company’s statements and regulatory disclosures had created doubts among investors about the credibility of management communications, leaving them uncertain about what to believe or trust when management makes public announcements.
The concerns assume significance because Ola’s earlier network claims are under regulatory scrutiny. The offer document records a January 7, 2025, SEBI administrative warning after Aggarwal announced a fourfold expansion of company-owned stores on social media before informing the stock exchanges. The latest dealer communication, however, was disclosed to the bourses.
Orders or sales?
SEBI’s April 10 show-cause notice concerns Ola’s February 2025 announcement that it had sold more than 25,000 electric vehicles during the month.
According to the offer document, SEBI alleged that “the disclosed figure represented confirmed orders rather than completed sales involving registration and delivery”. It also questioned disclosures concerning payments, cancellations and fulfilment, alleging that only a portion translated into registrations and recognised revenue.
Ola subsequently clarified that the figure referred to bookings rather than recorded sales.
In Risk Factor 53, the company states: “We track certain operational metrics with internal systems and tools and do not independently verify such metrics.” These include sales volumes, order fulfilment and after-sales service volumes. Ola maintains that its reported metrics are accurate.
Disclosures questioned
SEBI’s notice also alleges misleading December 2024 announcements about more than 3,200 stores being co-located with service centres and an expansion to 4,000 stores. The regulator alleged that these disclosures contributed to an 8.45 per cent increase in Ola’s share price on December 2, 2024.
The notice further questions Roadster and Roadster X motorcycle prototype approvals and delivery timelines.
The offer document states that SEBI alleged Aggarwal “disseminated or was responsible for misleading public statements and corporate announcements and incorrectly certified matters relating to financial reporting and internal controls”.
Ola and Aggarwal filed a settlement application on June 8, 2026. It remained pending as of October 7. The allegations have not been established through a final regulatory order.
Control gaps
Separately, auditors reported that Ola Electric Mobility, Ola Cell Technologies and Ola Electric Technologies lacked mandatory internal audit systems during FY26. The consolidated internal financial controls report also contained a qualified opinion concerning inventory-verification controls at a subsidiary.
The ₹999.74-crore rights issue follows Ola’s ₹5,500-crore IPO in 2024 and ₹780.24-crore institutional placement in June 2026. The offer acknowledges that proceeds from earlier issues remain partly unutilised, while the latest fundraising covers overlapping purposes, including debt repayment, organic growth and general corporate expenditure.
Priced at ₹27 a share, the issue has an October 13 record date and runs from October 22 to 30. Aggarwal has pledged shares representing 4.32 per cent of Ola’s equity to finance his participation, according to the filing.