Ola Electric share price rallies 14% as SoftBank trims stake to 11.7%
By Rohit SharmaMarkets Analyst, Peepals Business
Representative image: rupixen / Pixabay
Ola Electric shares jumped about 14% on October 27, 2026 during its Rs 999.74 crore rights issue, as a filing showed SoftBank's vehicle cut its stake to 11.7%.
What Happened
The Ola Electric share price rally on Tuesday, October 27, 2026, took the stock up about 14% during the session, its biggest one-day gain since April 9. Shares of Ola Electric Mobility traded at about Rs 33.6 on the National Stock Exchange in the afternoon, up around 12% at 1:55 pm, against a previous close of Rs 29.94, after touching an intraday high of about Rs 34.09. The move came in the middle of the company's Rs 999.74 crore rights issue, which opened on October 22 and closes on October 30. On the same day, a regulatory filing showed that a SoftBank investment vehicle had cut its stake in the electric two-wheeler maker from 12.9% to 11.7%.
Key Facts
- Ola Electric's share price rose as much as about 14% on October 27, 2026; previous close Rs 29.94, intraday high about Rs 34.09.
- At 1:55 pm the stock was at Rs 33.62, up 12.29%, according to market data; this was its biggest daily gain since a rise of nearly 20% on April 9.
- Rights issue: up to 37,02,72,665 new shares at Rs 27 each, to raise up to Rs 999.74 crore; open from October 22 to October 30.
- SoftBank's vehicle sold about 5.55 crore shares between January 6 and October 22, 2026, reducing its holding to 11.7% from 12.9%.
- It also sold 1.12 crore rights entitlements, about 25.9% of those allotted to it.
- Goldman Sachs has rated the stock "Sell", with a target price of Rs 23, down from Rs 39.28.
- Founder Bhavish Aggarwal holds 26.52% of the company, according to reports.
Why It Matters
Ola Electric came to the stock market in August 2024 through an IPO priced in a band of Rs 72 to Rs 76 a share, so today's level is less than half of that. That fall reflects a tougher business: its share of India's electric two-wheeler market fell to 6.5% in September from 7.6% in August, according to industry data cited in reports. Against that background, a 14% jump in a single day stands out.
Reports linked part of the rally to a rise in shares of rival Ather Energy, which recently reported its first quarterly profit. Investors often move stocks in the same sector together, so good news at one electric two-wheeler maker can lift sentiment for others. The rights issue may also be playing a part. In a rights issue, existing shareholders get the right to buy new shares, usually at a discount, in proportion to what they already own. Ola's rights shares are priced at Rs 27, below the market price, and those rights can themselves be traded during the offer period. Shareholders who do not want to invest more can sell their entitlements, as SoftBank's vehicle did with part of its quota.
SoftBank's steady selling is the other side of the story. Its vehicle has been reducing its stake through sales on the market over the year. Its decision to sell part of its rights entitlements suggests it does not plan to put in fresh money at this stage. Meanwhile, Goldman Sachs's Sell rating, with a target of Rs 23, shows that some large analysts remain cautious even after the rally. These are analysts' views, and nothing here is advice to buy or sell.
Ola Electric share snapshot, October 27, 2026 Item | Figure Previous close | Rs 29.94 Price at 1:55 pm | Rs 33.62 (up 12.29%) Intraday high | about Rs 34.09 Rights issue price | Rs 27 Goldman Sachs target | Rs 23 (Sell)
Impact
Short-term: The stock's move will be watched against the rights issue price of Rs 27 until the offer closes on October 30. A price well above Rs 27 makes the rights more attractive to take up or sell.
Long-term: The Rs 999.74 crore raised through the rights issue will shape how much room the company has to fund operations and compete. Market share figures in the coming months will matter more than a single day's rally.
Who is affected: Ola Electric's shareholders, including small investors deciding whether to subscribe to the rights issue; SoftBank and other large holders; and buyers of electric scooters watching the company's health.
Key Takeaway
The Ola Electric share price rally of about 14% on October 27, 2026 came during its Rs 999.74 crore rights issue, even as SoftBank's vehicle cut its stake to 11.7% and Goldman Sachs kept a Sell rating.
Questions and Answers
Why did the Ola Electric share price rally on October 27, 2026?
The stock rose about 14% during the day, its biggest gain since April 9. Reports linked the move to a rise in rival Ather Energy's shares, and it came while the company's rights issue was open. The company did not announce a specific trigger.
What are the terms of the Ola Electric rights issue?
Up to 37,02,72,665 new shares are on offer at Rs 27 each to raise up to Rs 999.74 crore. The issue opened on October 22 and closes on October 30, 2026.
How much of Ola Electric does SoftBank own now?
A SoftBank investment vehicle cut its holding to 11.7% from 12.9% by selling about 5.55 crore shares between January 6 and October 22, 2026. It also sold 1.12 crore rights entitlements.
Should investors buy Ola Electric shares now?
Peepals does not give investment advice. Analysts differ; Goldman Sachs, for example, has a Sell rating with a target of Rs 23. Investors should study the rights issue documents and consult a registered adviser.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rohit Sharma, Markets AnalystCovers Markets Watch and more for Peepals Business. All stories by Rohit Sharma
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Rohit Sharma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
