Ola Electric Mobility Limited IPO

Ola Electric Mobility Limited IPO  opens on August 2, 2024, and closes on August 6, 2024. The allotment for the Ola Electric  IPO   is anticipated to be completed on Wednesday, August 7, 2024. The IPO will be listed on the BSE and NSE, with a tentative date set for Friday, August 9,2024.

The price band for the Ola Electric  IPO is set at Rs 72 to Rs 76 per share. The IPO is a book-built issue of Rs 6,145.56 crores, entirely a fresh issue of 72.37 crores shares.

OLA Electric IPO Details

OLA Electric IPO Lot Size

OLA Electric IPO Objectives

The objectives of the Issue are:

1. Capital expenditure to be incurred by its Subsidiary, OCT for expansion of the capacity of its cell manufacturing plant from 5GWh to 6.4 GWh, classified as phase 2 under the expansion plan(the “Project”);
2. Repayment or pre-payment, in full or part, of the indebtedness incurred by its Subsidiary, OET;
3. Investment into research and product development;
4. Expenditure to be incurred for organic growth initiatives; and
5. General corporate purposes.

About Ola Electric Mobility Limited

Ola Electric Mobility Limited, established in 2017, is an electric vehicle company that manufactures electric vehicles and key components, including battery packs, motors, and vehicle frames at its Ola Future Factory. Since August 2021, the company has launched seven new products and announced four others. The first EV model, the Ola S1 Pro, was delivered in December 2021, followed by the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+. On August 15, 2023, the company introduced new EV models and a range of motorcycles, including the Diamondhead, Adventure, Roadster, and Cruiser.

As of October 31, 2023, Ola Electric operated an extensive omnichannel distribution network across India, consisting of 870 experience centers and 431 service centers, including 429 located within the experience centers, as well as an online presence through the Ola Electric website. In FY 2023, approximately 75% of their two-wheeler exports from India were destined for Africa, LATAM, and Southeast Asia, while the domestic supply of electric two-wheelers was limited.

Ola Electric’s business model is built on three key scalable platforms: the R&D and technology platform, which focuses on in-house design and development of EV technologies and components; the adaptable production and supply chain platform; and the direct-to-consumer (D2C) omnichannel sales platform. As of March 31, 2024, the company employed 959 individuals, including 907 permanent employees and 52 freelancers, who are dedicated to research and development, product development, vehicle and software development, vehicle design, and cell development.

Ola Electric Mobility Limited Financial Information

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.

OLA Electric IPO Reservation

OLA Electric IPO Timeline

OLA Electric IPO opens on August 2, 2024, and closes on August 6, 2024.

Conclusion

Ola Electric Mobility Limited’s IPO, opening from August 2 to August 6, 2024, presents a significant investment opportunity in the burgeoning electric vehicle market. With a price band of Rs 72 to Rs 76 per share and a fresh issue size of Rs 6,145.56 crores, the IPO aims to fund expansion, repay debt, and support R&D. Boasting a strong omnichannel distribution network and robust R&D capabilities, Ola Electric has demonstrated substantial revenue growth despite recent profitability challenges. The listing on BSE and NSE, set for August 9, 2024, underscores Ola Electric’s strategic ambitions and potential for long-term value creation in the EV sector.