Bhavish Aggarwal Pledges Ola Electric Stake To Raise Debt For Krutrim

Ola Electric’s founder and CEO Bhavish Aggarwal has pledged shares of the electric two-wheeler manufacturer to raise debt for his third unicorn, Krutrim.

In an exchange filing, the EV major said that Aggarwal has signed a non-disposal undertaking, executed between him, Axis Trustee Services, and Krutrim Data Centre, on November 23 in relation to some debentures issued by Krutrim.

Aggarwal, who holds 132.39 Cr shares, or 30.02% stake, of Ola Electric, has pledged 4.83 equity shares, or 1.10% of equity stake, of the two-wheeler EV major. The amount of shares pledged translates to 3.65% of the total shares held by the promoter. 

As per Ola Electric’s closing price of INR 69.14 on Friday (November 22), a day before the agreement was signed, the pledged shares were worth INR 334.32 Cr ($39.47 Mn). 

It is pertinent to note that the stake held by the promoter and promoter group of Ola Electric is locked-in till February, as per SEBI’s regulations. The regulations specify that the entire pre-issue capital of the shareholders is locked-in for a period of six months from the date of allotment in case of listing pursuant to public issue or date of listing in case of listing without public issue. 

“Further, upon the expiry of the lock-in over the promoter shares, the promoter will create a pledge over a portion of the promoter shares and make relevant disclosures…,” Ola Electric said in the filing. 

In January this year, Krutrim became India’s first AI unicorn after raising $50 Mn in a round which saw participation from investors like Z47 (then Matrix Partners India). 

Inc42 has reached out to Krutrim seeking further details about the debt issue. The story will be updated on receiving a response. 

For Ola Electric, the development comes at a time when its shares have seen a revival over the last week or so on the back of new product launches. The stock has gained about 35% since the date of signing the non-disposal undertaking. 

On November 26, Ola Electric launched its new Gig and S1 Z range of scooters, focussed on the gig economy and price-conscious consumers. It also launched a portable battery pack, named Ola PowerPod. The battery pack is set for roll out in April 2025. 

Earlier today, the EV company announced plans to expand its company-owned store network to 4,000 by December 20. “With over 3,200 new stores set to open, Ola Electric will operate India’s largest EV distribution network, covering all the country’s pin codes,” the company said in a press release. 

Shares of Ole Electric ended today’s trading session 6.44% higher than previous close at INR 93.05.

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