In a strategic move to enhance its battery manufacturing capabilities, Ola Electric’s board has approved an infusion of INR 199 crore in its subsidiary, Ola Cell Technologies (OCT). This significant investment is expected to support OCT’s business requirements, particularly in scaling up its lithium-ion cell manufacturing capabilities.
Ola Electric Boosts Battery Manufacturing Capabilities with INR 199 Cr Investment in Ola Cell Technologies
Ola Electric Latest Updates:
- Acquisition of CCPS: Ola Electric plans to acquire 19.9 crore compulsory convertible preference shares (CCPS) in OCT at a price of INR 10 each, with the transaction expected to be completed by April 30, 2025.
- Conversion of Overdue Payables: The board has also approved the conversion of overdue payables of INR 61.2 crore into 6.12 crore CCPS.
Strengthening Battery Manufacturing Capabilities:
This investment is part of Ola Electric’s broader strategy to reduce dependence on external suppliers and strengthen its battery manufacturing capabilities. The company has already announced plans to invest INR 7,614 crore in Tamil Nadu to set up a four-wheeler EV manufacturing plant and a lithium-ion cell manufacturing unit.
Future Plans:
With this investment, Ola Electric aims to enhance its competitiveness in the EV market and accelerate the adoption of electric vehicles in India. The company’s focus on developing a robust battery manufacturing ecosystem is expected to drive growth and innovation in the sector.
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