Ola Electric IPO: All You Need to Know

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Ola Electric IPO: All You Need to Know

OLA Electric IPO is a book built issue of Rs 6,145.56 crores.

August 1st, 2024 News

Ola Electric's upcoming IPO is set to be a significant event in the Indian stock market. Here’s a detailed look at the offering and what potential investors need to know.

IPO Overview

Total Issue Size: Rs 6,145.56 crores
Fresh Issue: 72.37 crore shares worth Rs 5,500.00 crores
Offer for Sale: 8.49 crore shares worth Rs 645.56 crores

Key Dates

Opening Date: August 2, 2024
Closing Date: August 6, 2024
Allotment Date: August 7, 2024
Listing Date: August 9, 2024 (BSE, NSE)

Pricing and Investment Details

Price Band: ₹72 to ₹76 per share
Lot Size: 195 shares
Minimum Investment for Retail Investors: ₹14,820
Minimum Lot Size Investment for sNII: 14 lots (2,730 shares) amounting to ₹207,480
Minimum Lot Size Investment for bNII: 68 lots (13,260 shares) amounting to ₹1,007,760
Employee Discount: ₹7 per share

Promoters and Managers

Promoter: Bhavish Aggarwal
Book Running Lead Managers: Kotak Mahindra Capital, Bofa Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, Bob Capital Markets
Registrar: Link Intime India Private Ltd

Shareholding Details

Pre-Issue Shareholding: 3,687,072,258 shares
Post-Issue Shareholding: 4,410,756,468 shares

Reservation for Investors

QIB: Not less than 75% of the Net Issue
Retail: Not more than 10% of the Net Issue
NII (HNI): Not more than 15% of the Net Issue

Company Overview

Founded in 2017, Ola Electric Mobility Limited is a prominent player in the electric vehicle (EV) market in India. The company focuses on manufacturing EVs and key components like battery packs, motors, and vehicle frames at its Ola Futurefactory.

Product Lineup:

Ola S1 Pro: Launched in December 2021
Ola S1, S1 Air, S1 X, and S1 X+: Launched subsequently
Upcoming Models: Diamondhead, Adventure, Roadster, and Cruiser motorcycles

Distribution Network:

Experience Centers: 870 across India
Service Centers: 431 (429 within experience centers)
Online Platform: Ola Electric website

Manufacturing Facilities:

Ola Futurefactory: Largest integrated and automated E2W manufacturing plant in India
Upcoming Facilities: Ola Gigafactory and co-located suppliers in Tamil Nadu

Financial Snapshot

Revenue and Profit Trends (in ₹ Crore):

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	7,735.41	5,573.17	5,395.86	2,112.64
Revenue	5,243.27	2,782.70	456.26	106.08
Profit After Tax	-1,584.40	-1,472.08	-784.15	-199.23
Net Worth	2,019.34	2,356.44	3,661.45	1,970.62
Reserves & Surplus	-2,882.54	-1,380.03	-68.83	1,999.30
Total Borrowing	2,389.21	1,645.75	750.41	38.87

Key Performance Indicators

Market Capitalization: Rs 33,521.75 Cr
RoNW: -78.46%
P/BV: 13.72

Pre IPO vs Post IPO EPS (in ₹):

Pre IPO: 2.45
Post IPO: 2.77
P/E Ratio: -17.69 (Pre IPO), -21.16 (Post IPO)

Objects of the Issue

Expansion: Increasing the capacity of its cell manufacturing plant from 5GWh to 6.4 GWh.
Debt Repayment: Pre-payment or repayment of indebtedness.
R&D Investment: Enhancing research and product development.
Organic Growth Initiatives: Capital expenditure for business growth.
General Corporate Purposes.

Analyst Review

Pros:
- Emerging leader in the E-2W segment.
- Expanding product portfolio.
- Robust R&D and technology focus.
Cons:
- Currently posting losses.
- Negative P/E due to negative earnings.

Conclusion

Ola Electric's IPO presents a promising opportunity for long-term investors who believe in the potential of the electric vehicle market. While the company is currently operating at a loss, its strategic expansions and product innovations suggest a bright future. Investors are advised to consider the risks and rewards carefully before investing.