Ola Electric Mobility Limited IPO (OLA Electric IPO) Review –
Ola Electric Mobility Limited IPO (OLA Electric IPO) is set to open from 2nd Aug 2024 to 6th Aug 2024. This article will analyze the financials , strengths and weaknesses of the Ola Electric Mobility Limited IPO (OLA Electric IPO). Keep scrolling below to read more!
Ola Electric Mobility Limited IPO (OLA Electric IPO) Overview –
Established in 2017, Ola Electric Mobility Limited is an electric vehicle company that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Future factory.
Since August 2021, the company has launched seven new products and announced four. The Ola S1 Pro, the first EV model, was delivered in December 2021, followed by the Ola S1, Ola S1 Air, Ola S1 X and Ola S1 X+ in the following years. On August 15, 2023, the company announced new EV models and a range of motorcycles including Diamond head, Adventure, Roadster, and Cruiser.
As of October 31, 2023, the company operates its “omnichannel distribution network across India, comprising 870 experience centers and 431 service centers (including 429 service centers in experience centers), in addition to the Ola Electric website.
In FY 2023, around 75% of 2W exports from India were destined for Africa, LATAM, and South East Asia, while the domestic supply of E2W was limited.
The business model relies on three key scalable platforms:
- The R&D and technology platform with in-house design and development of EV technologies and components,
- The adaptable production and supply chain platform and
- The D2C omnichannel sales platform
As of March 31, 2024, the company had 959 employees (including 907 permanent employees and 52 freelancers) who focus on research and development. They are dedicated to product development, vehicle and software development, vehicle design, and cell development.
Ola Electric Mobility Limited IPO (OLA Electric IPO) Synopsis-
Ola Electric Mobility Limited IPO (OLA Electric IPO) is set to be open from 2nd Aug 2024 to 6th Aug 2024, offering combination of fresh issue of 72.37 crore shares aggregating to Rs 5500.00 crores and offer for sale (OFS) of 8.49 crore shares aggregating to Rs 645.56 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Friday, August 9, 2024..
The total issue size of this IPO amounts to Rs. 6145.56 Crores. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 2nd Aug 2024 |
| Closing Date | 6th Aug 2024 |
| Lot Size | 195 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 6145.56 Cr |
| Fresh Issue | Rs. 5500.00 Cr |
| IPO Price Range | Rs. 72 – 76 |
| Min. Investment | Rs. 14,820 |
| Offer for Sale (OFS) | Rs. 645.56 Cr |
| Employee Discount | Rs 7 per share |
| Basis of Allotment | 7th Aug 2024 |
| Refunds | 8th Aug 2024 |
| Listing Date | 9th Aug 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Ola Electric Mobility Limited IPO (OLA Electric IPO) Market Lot
Ola Electric Mobility Limited IPO (OLA Electric IPO) minimum market lot is 195 shares with ₹14,820 application amount. The retail investors can apply up-to 13 lots with 2535 shares or ₹192,660 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 195 | ₹14,820 |
| Retail Maximum | 13 | 2,535 | ₹192,660 |
| S-HNI Minimum | 14 | 2,730 | ₹207,480 |
| B-HNI Minimum | 68 | 13,260 | ₹1,007,760 |
Ola Electric Mobility Limited IPO (OLA Electric IPO) Book Running Lead Managers –
- Kotak Mahindra Capital Company Limited
- Bofa Securities India Limited
- Axis Capital Limited
- SBI Capital Markets Limited
Ola Electric Mobility Limited IPO (OLA Electric IPO) Registrar to the offer –
The registrar for the Ola Electric Mobility Limited IPO (OLA Electric IPO) is Link Intime India Private limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company proposes to utilize the Net Proceeds from the IPO towards the achievement of the following objects:
- Capital expenditure to be incurred by our Subsidiary, OCT for expansion of the capacity of our cell manufacturing plant from 5 GWh to 6.4 GWh, classified as phase 2 under the expansion plan (the “Project”);
- Repayment or pre-payment, in full or part, of the indebtedness incurred by our Subsidiary, OET;
- Investment into research and product development;
- Expenditure to be incurred for organic growth initiatives; and
- General corporate purposes
Key Performance Indicator –
The market capitalization of OLA Electric IPO is Rs 33521.75 Cr.
KPI as of March 31, 2024.
| Earning Per Share (EPS): Post IPO | ₹-3.59 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | -21.16 |
| Return on Net Worth (RoNW): | -78.46% |
| PAT Margin(%) | N/A |
| Net Asset Value (NAV): | ₹5.54 per Equity Share |
Financial Status –
Ola Electric Mobility Limited’s revenue increased by 88.42% and profit after tax (PAT) dropped by -7.63% between the financial year ending with March 31, 2024 and March 31, 2023.
| Particulars(in Rs. Crores) | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
| Revenue From Operations | 5243.27 | 2872.70 | 456.26 |
| PAT | -1584.40 | -1472.08 | -784.15 |
| Net Worth | 2019.34 | 2356.44 | 3661.45 |
| Total Assets | 7735.41 | 5573.17 | 5395.86 |
| Total Borrowings | 2389.21 | 1645.75 | 750.41 |
Evaluation of P/E Ratio
The P/E Ratio of Ola Electric Mobility Limited is N/A.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is N/A.
Peers of Ola Electric Mobility Limited IPO –
Ola Electric Mobility Limited peer comparison with similar listed entities. (As on March 31, 2024)
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E | RoNW (%) | P/BV | Financial statements |
|---|---|---|---|---|---|---|
| Ola Electric Mobility Limited | -4.35 | 5.54 | -78.46 | Consolidated | ||
| Tvs Motor Company Ltd. | 35.50 | 158.10 | 69.69 | 23.68 | 15.49 | Consolidated |
| Eicher Motors Ltd. | 146.18 | 659.06 | 36.78 | 22.17 | 7.44 | Consolidated |
| Bajaj Auto Ltd. | 272.70 | 1037.41 | 29.95 | 26.61 | 9.38 | Consolidated |
| Hero Motocorp Ltd. | 187.36 | 892.08 | 27.16 | 20.98 | 6.06 | Consolidated |
Ola Electric Mobility Limited IPO (OLA Electric IPO) Strengths –
- Ola Electric leads Fast Growing Indian E2W market with 31% registrations in 2023.
- Global R&D drives innovation in Ola Electric’s EV technology.
- Ola Future factory enables scalable, cost-efficient E2W production in India.
- PLI and FAME schemes reduce costs and boost competitiveness.
- Company works on the D2C business model.
- Experienced Promoters and Senior Management.
Ola Electric Mobility Limited IPO (OLA Electric IPO) Weakness –
- Losses and negative cash flows pose financial risks to Ola Electric.
- Reduced subsidies or government incentives may impact Ola Electric’s pricing and demand.
- Defects or price hikes could affect product quality and delivery.
- Revenue is dependent on the sales of limited electric vehicle scooter models.
- Intense competition challenges Ola Electric in the automotive market.
- Factory delays disrupt production capacity and impact timelines.
- Inaccurate forecasts cause inventory issues, affecting cost efficiency.
OLA Electric IPO Allotment Status
OLA Electric IPO allotment status will be available on Link Intime’s website.
Click on Link Intime IPO weblink to get allotment status.
Ola Electric Mobility Limited IPO (OLA Electric IPO) GMP Today –
The GMP for OLA Electric IPO shows the discounted price. The cap price for OLA Electric IPO is 76.00.The estimated listing price for OLA Electric IPO at the current GMP is ₹73.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
