Bhavish Aggarwal Infuses Rs 20 Cr Collateral as Ola Electric Shares Slide
The move follows Aggarwal’s earlier decision to raise ₹250 crore for his third unicorn and AI venture, Krutrim, by pledging shares of Ola Electric in December. Subsequently, he pledged an additional 5.88 crore shares of the electric vehicle major to secure further debt for the startup.
Stock Slump Prompts Cash Infusion
Since March, Ola Electric’s stock price has fallen below ₹50 apiece, prompting Aggarwal to cover collateral obligations with cash rather than pledging more shares. Despite the fall, sources told Bloomberg that the collateral value remains more than twice the borrowed amount, and no margin calls have been triggered thus far.
Under such lending agreements, if the value of pledged shares dips below a pre-set threshold, it leads to a margin call, requiring the borrower to either pledge more shares or infuse additional funds to maintain the collateral value.
8% Stake Encumbered
Aggarwal has reportedly pledged around 8% of his 30% stake in Ola Electric. The funding was facilitated by Avendus Group, InCred Alternative Investments, and Modulus Alternatives Investment Managers through bonds issued by Krutrim. These bonds carry coupon rates between 14.9% and 15.9%, backed by Ola Electric shares.
The infusion of ₹20 crore comes soon after Hyundai Motor and Kia Corporation offloaded more than 13.6 crore shares of Ola Electric in multiple bulk deals worth ₹689.31 crore. In one such transaction, Citigroup Global Markets Mauritius acquired 8.61 crore shares at ₹50.55 per share, totaling ₹435.7 crore.
Ola Electric Stock Performance
Ola Electric has seen a significant drop in its stock price — down 35% from its IPO listing price of ₹76. On June 5, the stock closed 1.8% lower at ₹49.06 on the BSE, with over 3.30 crore shares traded. The stock had hit an all-time low of ₹45.55 on April 7.
Aggarwal has also pre-funded 3 to 4 months of accrued interest on the bonds rather than pledging additional shares, the report noted.
The company’s public debut last August was relatively flat, with shares listing at ₹75.99 on the BSE and ₹76 on the NSE — matching the IPO price.
Financial Setback in Q4 FY25
Ola Electric reported a 109% year-on-year increase in consolidated net loss, reaching ₹870 crore in Q4 FY25, compared to ₹416 crore in the same period last year. The loss also widened 54% sequentially from ₹564 crore in the previous quarter.
Operating revenue plunged 62% YoY to ₹611 crore from ₹1,598 crore, and 42% quarter-on-quarter from ₹1,045 crore. A one-time warranty provision of ₹250 crore also contributed significantly to the losses.
A day after the Q4 results were announced, the stock plunged 10% intraday on May 30, touching ₹48.07.
Awaiting Comment
Inc42 has reached out to Bhavish Aggarwal for a statement regarding the latest developments. The story will be updated as and when his response is received.