Ola Electric share price jumps over 5%: Firm secures ₹367 crore PLI-Auto incentive for FY25

Ola Electric Mobility shares rallied as much as 5.37% to ₹37.25 apiece on the NSE in the early trade on Friday, December 26, as the company on Thursday said it has received a sanction order from the Ministry of Heavy Industries for the release of incentives amounting to ₹366.78 crore under the production-linked incentive scheme.

The sanction pertains to the demand incentive for the determined sales value for FY 2024-25 and authorises a payment of ₹366.78 crore to be released through IFCI Limited, the designated financial institution for disbursement under the scheme, the Bengaluru-based firm said in a statement.

The incentive has been sanctioned in accordance with the applicable terms and conditions of the PLI-Auto Scheme, as amended from time to time, it added.

This milestone reinforces Ola Electric's role as a key contributor to India's advanced automotive manufacturing ecosystem and reflects the company's strong execution across scale, localisation, and technology-led vertically integrated manufacturing, it stated.

PLI scheme for automobiles and auto components

The Union Cabinet approved the PLI-Auto Scheme on September 15, 2021, with a budgetary outlay of ₹25,938 crore for a period of five years (FY2022-23 to FY2026-27). The PLI-AUTO scheme will boost the manufacturing of advanced automotive technology (AAT) products.

The PLI-Auto incentive is India's Production Linked Incentive scheme for the auto sector, offering financial rewards for domestic manufacturing of Advanced Automotive Technology (AAT) products, like electric vehicles (EVs) & their components, to reduce imports, build local supply chains, create jobs, and make India a global auto manufacturing hub.

What Ola said on the development

This incentive recognises the company's sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain, the spokesperson added.

"We remain committed to supporting the Government of India's vision of making India a global hub for advanced automotive manufacturing and clean mobility," the spokesperson said.

The PLI-Auto Scheme is a flagship initiative of the Government of India, aimed at strengthening domestic manufacturing, encouraging advanced automotive technologies, and enhancing India's global competitiveness in the automotive and auto components sectors.

Ola Electric: Recent updates

Last week, Ola Electric confirmed the completion of a one-time, limited monetisation of a portion of the founder's personal shareholding, undertaken to fully repay a promoter-level loan of around ₹260 crore.

The transaction has resulted in the release of all 3.93% shares that were previously pledged, bringing the promoter's pledge in the company to zero, the Bengaluru-based firm stated in a press release.

The company said the monetisation was a planned, time-bound exercise executed entirely at the promoter's personal level and was carried out in tranches.

Post completion of the transaction, the promoter group continues to hold more than 34.5% in Ola Electric, which remains amongst the highest promoter ownership levels across new-age listed companies, it added.

Ola Electric emphasised that the transaction does not involve any dilution of promoter control and reflects no change in the founder's long-term conviction in the company.

Ola Electric this week announced the expansion of its Hyperservice initiative with the launch of dedicated centres, designed to offer a same-day service guarantee to eligible customers at no additional cost.

As part of this expansion, the company will progressively upgrade its existing service centres into Hyperservice Centres, starting with Bengaluru.

The first Hyperservice centre is now operational in Indiranagar, Bengaluru, Ola Electric said in a statement. The centre is designed to fundamentally simplify and speed up the service experience, it added.

Ola Electric share price trend

Shares of the company have risen 5.53% on the NSE over the past five sessions.