Ola Electric’s initial public offering (IPO) is generating significant excitement in the financial domain. Ola Electric Mobility Limited, a major participant in the electric vehicle (EV) sector, is preparing to make its stock market debut with a substantial offering. The IPO is expected to raise a sum of ₹6,145.56 crores, comprising a new issuance of ₹5,500.00 crores through the sale of 72.37 crore shares and an offer for sale (OFS) of ₹645.56 crores through 8.49 crore shares. The price band for the shares is set between ₹72 and ₹76 per share. To take advantage of this opportunity, you can easily open a Demat account with HDFC Sky.
About Ola Electric Mobility Ltd
Founded in 2017, Ola Electric Mobility Limited has rapidly emerged as a significant contender in the electric vehicle (EV) sector. The company focuses on producing electric vehicles and vital components like battery packs, motors, and chassis at its cutting-edge Ola Futurefactory. Ola Electric’s approach is built on three scalable platforms: an R&D and Technology Platform for in-house EV innovation, a Production and Supply Chain Platform geared towards adaptable manufacturing, and a Direct-to-Consumer Omnichannel Sales Platform that seamlessly combines online and physical sales channels.
Product Line and Launches
Since it was established, Ola Electric has significantly broadened its range of products.
- Ola S1 Pro: The initial electric vehicle model was released in December 2021.
- Ola S1 Series: Comprising of the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+.
- New EV Models and Motorcycles like the Diamondhead, Adventure, Roadster, and Cruiser were announced for August 2023.
In the fiscal year 2023, Ola Electric prioritized its export activities, exporting around 75% of its two-wheeler exports to Africa, Latin America, and Southeast Asia. The supply of electric two-wheelers within the company’s home market was relatively limited.
As of March 31, 2024, Ola Electric has a workforce of 959 people, consisting of 907 permanent employees and 52 freelancers, focused on research, product development, vehicle design, and software development.
Ola Electric Mobility IPO Details
| IPO Detail | Information |
| IPO Date | August 2, 2024 to August 6, 2024 |
| Listing Date | August 9, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹72 to ₹76 per share |
| Lot Size | 195 Shares |
| Total Issue Size | 808,626,207 shares (aggregating up to ₹6,145.56 Cr) |
| Fresh Issue | 723,684,210 shares (aggregating up to ₹5,500.00 Cr) |
| Offer for Sale | 84,941,997 shares (aggregating up to ₹645.56 Cr) |
| Employee Discount | ₹7 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding Pre-Issue | 3,687,072,258 |
| Shareholding Post-Issue | 4,410,756,468 |
Investment Requirements
Rеtail Invеstors:
- Minimum Invеstmеnt: ₹14,820 for 195 sharеs
- Maximum Invеstmеnt: ₹192,660 for 2,535 sharеs
Small and Non-Institutional Invеstors (sNII):
- Minimum Lot: 14 lots (2,730 sharеs) for ₹207,480
- Maximum Lot: 67 lots (13,065 sharеs) for ₹992,940
Big and Non-Institutional Invеstors (bNII):
- Minimum Lot: 68 lots (13,260 sharеs) for ₹1,007,760
IPO Reservation Details
- QIB Shares Offered: At least 75% of the Net Issue
- Retail shares available: Up to 10% of the Net Issue
- HNI (NII) Shares Offered: Up to 15% of the Net Issue
Ola Electric Mobility Limited Financials
| 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 and Surplus | -2,882.54 | -1,380.03 | -68.83 | 1,999.30 |
| Total Borrowing | 2,389.21 | 1,645.75 | 750.41 | 38.87 |
All Amounts in Crores
- Ola Electric Mobility Limited experienced an 88.42% increase in revenue, with profit after tax (PAT) declining by 7.63% for the financial year ending March 31, 2024, in comparison to March 31, 2023
- The Ola Electric IPO has a market capitalization of ₹33,521.75 crore.
- The Return on Networth (RoNW) is currently at a negative 78.46%.
- The Price-to-Book Value (PBV) stands at 13.72.
- Before the IPO, the Earnings Per Share (EPS) was -4.3, while it was -3.59 after the IPO.
- The Price-to-Earnings (P/E) ratio stands at -17.69 before the IPO and -21.16 after the IPO.
Objectives of Ola Electric Mobility Limited IPO
The company intends to utilize the net funds raised from the IPO for the following objectives:
- Increase capital expenditure for its subsidiary, OCT, to boost the cell manufacturing plant’s capacity from 5 GWh to 6.4 GWh in phase 2 of the expansion project.
- Settle or pay off, either partly or completely, the debts acquired by its subsidiary, OET.
- Invest in research and development for product innovation.
- Support expenditure for initiatives designed to promote organic growth.
- Allocate funds for general corporate purposes.
Ola Electric Mobility IPO Peer Comparison
Comparison of Ola Electric Mobility Limited with similar publicly listed companies as of March 31, 2024
| Company Name | EPS
(Basic) |
EPS
(Diluted) |
NAV
(per share) (Rs) |
P/E
(x) |
RoNW
(%) |
P/BV
Ratio |
| Ola Electric Mobility Limited | -4.35 | -4.35 | 5.54 | – | -78.46 | – |
| TVS Motor Company Ltd. | 35.5 | 35.5 | 158.1 | 69.69 | 23.68 | 15.49 |
| Eicher Motors Ltd. | 146.18 | 145.92 | 659.06 | 36.78 | 22.17 | 7.44 |
| Bajaj Auto Ltd. | 272.7 | 272.7 | 1,037.41 | 29.95 | 26.61 | 9.38 |
| Hero Motocorp Ltd. | 187.36 | 187.04 | 892.08 | 27.16 | 20.98 | 6.06 |
Source: Financial information from annual reports/results for the year ending March 31, 2024.
- Ola Electric: Information from Restated Consolidated Financial Statements for the year ending March 31, 2024.
- EPS: Basic/Diluted EPS from financial statements for the year ending on March 31, 2024.
- RoNW: Net profit after tax divided by total equity; loss for the year divided by Net Worth as of March 31, 2024.
- NAV: The total equity divided by the number of outstanding shares at the end of the year.
- P/E Ratio: The closing market price on NSE (July 25, 2024) divided by Diluted EPS n.
- EV: T Total Market Capitalization plus Net Adjusted Debt; Market Cap equals Offer Price multiplied by post-offer shares.
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