Ola Electric IPO 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 Mobility IPO – Important Dates
| Ola Electric IPO Date | August 2, 2024 to August 6, 2024 |
| Ola Electric IPO Listing Date | August 9, 2024 |
| Ola Electric IPO Price | INR 72 -76 per share |
| Ola Electric IPO Lot Size | 195 shares |
| Ola Electric IPO Total Issue Size | INR 6,145.56 crores |
| Ola Electric IPO Basis of Allotment | August 7, 2024 |
| Ola Electric IPO Initiation of Refunds | August 8, 2024 |
| Ola Electric IPO Credit of Shares to Demat | August 8, 2024 |
| 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 Electric Mobility Limited Technologies’ financial analysis reveals a mixed performance. Revenue growth highlights significant increases while rising liabilities and worsening EPS and RoNW reflect challenges. Improved PAT and increasing assets suggest potential business growth.
- Revenue Trend: The revenue increased from ₹3,734.23 million in March 2022 to ₹26,309.27 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 50,098.31 million.
- Equity and Liabilities: Liability has shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹(7,841.50) million in March 2022 to ₹(15,844.00) million by March 2024.
- Earnings per Share (EPS): The diluted EPS has worsened from ₹(2.23) in March 2022 to ₹(4.35) by March 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has worsened from (21.42)% to (78.46)%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
Ola IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 3,734.23 | 26,309.27 | 50,098.31 |
| Equity (₹ in Million) | 36,614.52 | 23,564.44 | 20,193.39 |
| Expenses (₹ in Million) | 11,738.12 | 38,833.75 | 62,774.11 |
| Profit and Loss After Tax (₹ in Million) | (7,841.50) | (14,720.79) | (15,844.00) |
| RoNW (%) | (21.42) | (62.47) | (78.46) |
| NAV per Equity Share (₹) | 10.43 | 6.26 | 5.54 |
| Diluted EPS only (₹) | (2.23) | (3.91) | (4.35) |
| Total Assets (in millions) | 53,958.63 | 55,731.69 | 77,354.09 |
| Total Liabilities (in millions) | 17,344.11 | 32,167.25 | 57,160.70 |
Ola Electric IPO Peer Comparison
Ola Electric Mobility is currently unprofitable with a high return on net worth. TVS Motors and Bajaj Auto show strong earnings and moderate profitability. Eicher Motors and Hero MotoCorp also display solid earnings and returns on net worth.
| 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
The main objective of Ola Electric Mobility Limited is to expand its cell manufacturing capacity, repay subsidiary debt, invest in research and development, and fund organic growth initiatives to drive overall business growth.
- Capital expenditure to be incurred by their Subsidiary, OCT, to expand the capacity of their cell manufacturing plant (Ola Giga factory): The company intends to utilize INR 1226 crores from the Fresh Issue’s Net Proceeds to support the expansion of Ola Giga Factory’s cell manufacturing plant, boosting its production capabilities significantly.
- Repayment or prepayment, 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 aims to utilize INR 1600 crores through either debt or equity to finance R&D-focused subsidiaries from Fiscal 2025-2027, aiming to enhance competitiveness, control manufacturing, and expand its consumer base.
- Expenditure for organic growth initiatives: The company plans to invest INR 350 crores from Net Proceeds for organic business expansion, including rental expenses for current experience centers, establishing new ones, and enhancing the hypercharger gun network through its subsidiary, OET.
- General corporate purposes: The company plans to use the Net Proceeds for general corporate purposes, including strategic initiatives, funding growth opportunities, maintaining plants and machinery, meeting exigencies, brand building, and repaying outstanding term loans.
Ola Electric Mobility Ltd IPO Risks And Challenges
Ola Electric Mobility Limited’s risk includes financial instability due to a short operational track record and losses, dependence on government incentives for affordability, and challenges in establishing manufacturing facilities, including delays, shortages, and regulatory uncertainties.
- The company’s short operational track record and recent losses create financial risks. Its limited manufacturing and testing history could lead to product defects, harm its reputation, and incur significant expenses.
- Dependence on government incentives like FAME and PLI Schemes for EV affordability poses risks. Any changes in subsidy programs or failure to meet capacity milestones could impact competitiveness and financial performance.
- Establishing multiple manufacturing facilities involves potential delays, shortages, compliance issues, and uncertainties related to land allotment, legal requirements, and regulatory approvals.
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.
Two-wheelers are leading India’s automotive electrification, appealing to price-sensitive consumers. With ~5.1% adoption in H1 FY 2024 and 41-56% projections by FY 2028, they offer affordability, advanced features, and significant global export potential.
Global EV disruptors, rooted in electric technology, excel in innovation and process optimization, leading with unique strategies. In India, they dominate 70% of E2W sales through vertical integration and expertise in crucial EV technologies.
Ola IPO – Type of Offer
Ola Electric Mobility plans a fresh issue of shares, seeking INR 5,500 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 millions) |
| Bhavish Aggarwal | 47,394,014 |
Ola IPO Offer Size
The offer size of Ola Electric Mobility Limited is INR 6,145.56 crores, consisting of a fresh issue of shares worth INR 5500 crores and the sale of 9.52 crores of existing equity shares. The company seeks funds for OCT’s capital for plant expansion, OET debt repayment, R&D, organic growth, and general corporate needs.
Ola IPO Allotment Structure
Ola Electric’s 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 Mobility Ltd 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 already have one, you 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 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 do you check Ola IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- 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.
- 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.
- 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.
- 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
1. What is the allotment date of the Ola Electric IPO?
The allotment date of the Ola Electric IPO is August 7, 2024.
2. What is the price band of the Ola Electric IPO?
The price band of Ola Electric IPO shares issued by the company is INR 72-76 per share.
3. What is the size of the Ola Electric IPO?
The offer size of Ola Electric Mobility Limited is INR 6,145.56 crores, consisting of a fresh issue of shares worth INR 5,500 crores and the sale of 9.52 crores of existing equity shares. The company seeks funds for OCT’s capital for plant expansion, OET debt repayment, R&D, organic growth, and general corporate needs.
4. What is the listing date of the Ola Electric IPO?
The listing date of the Ola Electric IPO issue is August 9, 2024.
