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Mumbai: Ola Electric Mobility Ltd announced on May 22 that its board has approved raising up to Rs 1,700 crore. The company will do this by selling non-convertible debentures (NCDs) or other types of debt securities.

This money can be raised in one or more steps through private placements or other legal methods. The company said it will stay within the borrowing limit that shareholders already agreed on.

The money may come in the form of term loans, working capital, NCDs, or other types of loans. The final decision on how and when the money will be raised will depend on the market and the company's needs.

Trouble in Maharashtra: Showrooms Shut Down

While Ola is planning to raise funds, it is also facing problems in Maharashtra. The Maharashtra Transport Department found that many Ola Electric stores were running without the required trade certificates.

According to a notice, 107 out of 131 Ola showrooms in the state did not have the proper papers. Because of this, 104 notices have been sent and orders have been given to shut down these stores.

So far, only 43 stores have actually closed, and 214 vehicles have been taken by authorities. The department said that local RTOs must quickly act against the stores that have not followed the rules.

What This Means for Ola Electric

Ola Electric is trying to grow and raise more money for its business. But it also has to fix serious problems in how it runs its stores in Maharashtra. The company will need to work with the authorities to sort out these issues while continuing with its fundraising plans.