Ola Cell Technology to invest Rs 877.64 crore to ramp up battery production

Ola Electric's completely owned subsidiary, Ola Cell Technologies (OCT), is planning to invest up to Rs 877.64 crore in another business arm of the company, Ola Electric Technologies (OET).

As per the stock exchange filing, OCT’s board approved an investment on October 1 through a subscription to OET’s 87.76 crore non-cumulative, non-participating 0.001% Series A Optionally Convertible Redeemable Preference Shares (OCRPS), each with a face value of Rs 10. The investment will be made in tranches up to next year. 

The update came following the takeaways from the annual general meeting of Ola Electric on August 22, 2025, where the shareholders of the company decided to change the purposes of its IPO proceeds.

Formed in 2021 for vertical integration, OET develops and manufactures electric vehicle (EV) components, including chassis, motors, and battery packs. In FY25, it reported a turnover of Rs 4,510 crore, down from Rs 5,000 crore in FY24 and Rs 2,586 crore in FY23.

The company noted that the transaction, involving fellow subsidiaries, qualifies as a related-party transaction. However, the transaction is being conducted on an arm's-length basis. 

The new investment arrives as Ola Electric intensifies its efforts regarding the gigafactory project in Tamil Nadu, which aims to localise battery cell production and reduce reliance on imports.