Ola Electric is coming up with an IPO. The offer consists of a fresh issue of shares worth INR 5,500 crores and an offer to sell 9.52 crores of existing equity shares. The company will use the funds raised for its subsidiary-OCT’s plant expansion, subsidiary-OET debt repayment, R&D, organic growth, and general corporate needs.
Ola Electric IPO – Important Details
| Ola Electric IPO Date | NA |
| Ola Electric IPO Listing Date | NA |
| Ola Electric IPO Price | NA |
| Ola Electric IPO Lot Size | NA |
| Ola Electric IPO Total Issue Size | NA |
| Ola Electric IPO Basis of Allotment | NA |
| Ola Electric IPO Initiation of Refunds | NA |
| Ola Electric IPO Credit of Shares to Demat | NA |
| Ola Electric IPO Issue Type | Book Built Issue IPO |
| Ola Electric IPO Listing At | BSE, NSE |
Ola Electric Mobility Ltd IPO- Company Profile
Ola Electric, a leading Indian EV player, is strategically positioned with vertical integration for EVs and critical components. Focused on India’s electric mobility surge, they also aim to export EVs to select international markets.
R&D and technology form their core, driving in-house innovation for EVs and components—their facilities in India, the UK, and the US fuel the development of new products. The Ola Future factory, part of their EV hub in Tamil Nadu, is India’s largest automated E2W manufacturing plant.
Their D2C omnichannel distribution network includes 935 experience centers and 414 service centers (410 co-located within experience centers) nationwide, making it India’s largest company-owned network. Their Ola Electric website complements this extensive physical presence.
Ola Electric IPO – Fundamental Analysis
Ola’s financial overview depicts impressive revenue growth, but concerns arise with escalating expenses, negative profitability, and a consistent decline in key metrics like RoNW, NAV per Equity Share, and Diluted EPS, warranting careful consideration for potential investors.
Revenue Growth:
Ola exhibits notable revenue growth, surging from ₹8.64 million in 2021 to ₹26,309.27 million in 2023, indicating strong market demand and scalable business potential.
Expense Increase:
However, this growth is accompanied by a substantial rise in expenses, escalating from ₹2,849.03 million in 2021 to ₹38,833.75 million in 2023. The widening gap between revenue and expenses raises concerns about cost management and overall operational efficiency.
Profitability Concerns:
Ola reports negative Profit and Loss After Tax figures, declining from ₹(1,992.32) million in 2021 to ₹(14,720.79) million in 2023, signaling operational challenges and potential financial instability.
Return on Net Worth (RoNW):
The RoNW is consistently negative, plunging from (10.11)% in 2021 to (62.47)% in 2023, indicating a struggle to generate sufficient returns on equity, raising questions about shareholder value creation.
Net Asset Value (NAV) and Equity:
Despite an increase in total assets, the NAV per Equity Share declines from ₹5.83 in 2021 to ₹6.26 in 2023. This decrease suggests potential dilution of shareholder value and requires careful consideration.
Earnings per Share (EPS):
The Diluted EPS turns negative, dropping from (0.59) in 2021 to (3.91) in 2023, indicating a decline in earnings available to each share.
Total Liabilities:
Ola witnesses a significant increase in total liabilities, escalating from ₹1,420.25 million in 2021 to ₹32,167.25 million in 2023, raising concerns about the company’s debt management and overall financial stability.
Ola IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 8.64 | 3,734.23 | 26,309.27 |
| Equity (₹ in Million) | 19,706.15 | 36,614.52 | 23,564.44 |
| Expenses (₹ in Million) | 2,849.03 | 11,738.12 | 38,833.75 |
| Profit and Loss After Tax (₹ in Million) | (1,992.32) | (7,841.50) | (14,720.79) |
| RoNW (%) | (10.11) | (21.42) | (62.47) |
| NAV per Equity Share (₹) | 5.83 | 10.43 | 6.26 |
| Diluted EPS only (₹) | (0.59) | (2.23) | (3.91) |
| Total Assets (in million) | 21,126.40 | 53,958.63 | 55,731.69 |
| Total Liabilities (in million) | 1,420.25 | 17,344.11 | 32,167.25 |
| Debt Equity Ratio | (0.62) | (0.10) | 0.72 |
Ola Electric IPO Peer Comparison
Ola Electric’s IPO peer comparison reveals its significant revenue growth, but negative earnings. Compared to industry peers like TVS Motors, Eicher Motors, Bajaj Auto, and Hero MotoCorp, Ola Electric faces challenges in terms of profitability, diluted EPS, and RoNW, requiring careful investor consideration.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Ola Electric Mobility | 26,309.27 | 10 | NA | (3.91) | (3.91) | 62.47 | 6.26 |
| TVS Motors | 319,739.90 | 1 | 69.69 | 27.97 | 27.97 | 22 | 124.40 |
| Eicher Motors | 144,421.80 | 1 | 36.78 | 106.56 | 106.38 | 19 | 547.26 |
| Bajaj Auto | 364,553.80 | 10 | 29.95 | 212.50 | 212.50 | 21 | 1,029.48 |
| Hero MotoCorp | 341,583.80 | 2 | 27.16 | 140.62 | 140.49 | 17 | 838.97 |
Ola Electric Mobility Ltd IPO Objective
Ola Giga Factory allocates INR 1226 crores from Fresh Issue’s Net Proceeds for expanding cell manufacturing. INR 800 crores repay OET’s debts and maintain a favorable ratio, enabling business growth. R&D investment and INR 350 crores for organic expansion reflect strategic corporate planning.
- Capital expenditure to be incurred by their Subsidiary, OCT, to expand the capacity of their cell manufacturing plant(Ola Giga factory): Ola Giga Factory, a subsidiary, is set to expand its cell manufacturing plant, enhancing production capabilities. A capital expenditure plan involves allocating INR 1226 crores from the Fresh Issue’s Net Proceeds to fund this expansion project.
- Repayment or pre-payment, in whole or part, of the indebtedness incurred by their Subsidiary, OET: The company plans to utilize INR 800 crores from Net Proceeds to repay/prepay working capital loans, letter of credit, and overdraft facilities of OET. This will reduce their indebtedness, maintain a favorable debt-equity ratio, enable further investment in business growth and expansion, and position them to secure future resources at competitive rates.
- Investment into research and product development: The company plans to finance R&D-focused subsidiaries (in Fiscals 2025-2027), using either debt or equity, with the specific method yet to be determined, aiming to enhance competitiveness, control manufacturing, and expand the consumer base. For the said purpose the company plans to utilise INR 1600 crores.
- Expenditure for organic growth initiatives: The company plans to fund organic business expansion by investing INR 350 crores from Net Proceeds. This includes covering rental expenses for existing experience centers, expanding new ones, and enhancing the hypercharger gun network through investment in their subsidiary, OET.
- General corporate purposes: The company plans to use the Net Proceeds for general corporate purposes, including strategic initiatives, funding growth opportunities, maintenance of plants and machinery, meeting exigencies, brand building, and repayment of outstanding term loans.
Ola Electric Mobility Ltd IPO Risks And Challenges
Ola Electric, founded in 2017, navigates financial complexities with limited operating history and expansive plans. Ensuring product quality, leveraging government incentives, and establishing manufacturing facilities are crucial for sustained growth.
- Ola Electric, incorporated in 2017, faces challenges due to its limited operating history, with losses incurred in recent periods. Product portfolio expansion, international market entry, and subsidizing subsidiaries pose financial risks. The EV industry’s dynamics, technological advancements, and customer demands add complexity, requiring effective management for sustained growth.
- As a new EV industry entrant, their limited manufacturing and testing operating history poses risks. Despite adherence to standards, potential defects may harm reputation, lead to legal consequences and product recalls, and incur significant expenses, impacting overall business, finances, and brand image.
- Ola Electric benefits from government incentives like FAME and PLI Schemes, enhancing EV affordability. Compliance with capacity milestones is crucial to subsidies, and any reduction may affect competitiveness. Changes in subsidy programs pose risks to business and financial performance.
- Establishing multiple manufacturing facilities for EV scooters entails challenges, including potential delays, shortages, and compliance issues. Land allotment terms, legal requirements, and regulatory approvals pose uncertainties. Please complete timely expansions to ensure financial condition and operations are maintained.
Ola IPO – Industry & Market Potential
India, a significant player in 2W production and the third-largest 4W passenger Vehicle market, is experiencing an EV-led transformation. The government supports domestic EV manufacturing and adoption through production-linked incentives and subsidies, recognizing the emerging trend of intelligent EVs.
2Ws lead automotive electrification in India, favored by price-sensitive consumers. Advanced electric vehicles promise affordability, software features, superior experience, and decarbonization. Favored by price-sensitive consumers, 2Ws lead electrification, with ~5.1% adoption in H1 FY 2024, projected to reach 41-56% by FY2028, and significant global export potential.
Global EV disruptors, distinguished by electric roots, excel in innovation and process optimization, forging EV-specific paths and cultivating tech-centric cultures. Internationally, they lead with innovative strategies, while in India, disruptor OEMs secure 70% of E2W sales through vertical integration and mastery of crucial EV technologies.
Ola IPO – Type of Offer
Ola Electric Mobility plans a fresh issue of shares, seeking INR 5500 crores to augment the
capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 9.52 crore existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 5500 crores. The company intends to utilize the proceeds from the fresh issue for OCT’s capital for plant expansion, OET debt repayment, R&D, organic growth, and general corporate needs.
2. Offer for sale: Ola Electric Mobility is offering to sell 9.52 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in million) |
| Bhavish Aggarwal | 47,394,014 |
Ola IPO Offer Size
Ola Electric Mobility plans to launch an Initial Public Offering (IPO). This comprises a new issuance of shares totaling INR 550 crores and the sale of 9.52 crores of existing equity shares. The funds generated will be utilized for OCT’s capital for plant expansion, OET debt repayment, R&D, organic growth, and general corporate needs.
Ola IPO Allotment Structure
Ola Electric allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Eligible Employees: A portion of the issue is reserved for eligible employees.
How to apply for an Ola Electric IPO?
To apply for the Ola Electric IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Ola Electric IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Ola Electric Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Ola Electric IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Ola Electric IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Ola Electric IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Ola Electric IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Ola Electric IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Ola Electric IPO Offer Registrar
The registrar for the Ola Electric IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: +91 810811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Ola Electric IPO FAQs
What is the allotment date of the Ola Electric IPO?
The allotment date of the Ola Electric IPO has not yet been announced.
What is the price band of the Ola Electric IPO?
The price band of Ola Electric IPO shares issued by the company has not yet been announced.
What is the size of the Ola Electric IPO?
Ola Electric plans to launch an Initial Public Offering (IPO). This comprises a new share issuance of INR 5500 crores and the sale of 9.52 crores of existing equity shares. The funds generated will be used for OCT’s capital for plant expansion, OET debt repayment, R&D, organic growth, and general corporate needs.
What is the listing date of the Ola Electric IPO?
The listing date of the Ola Electric IPO issue has not yet been announced.
