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Ola Electric Mobility Limited has announced its plans to launch its Initial Public Offering (IPO) to raise Rs 5,500 crore through a fresh equity issue and an Offer-for-sale (OFS) of 95,191,195 equity shares. However, the share allotment date and listing date are disclosed, along with the price band and lot size.
Ola Electric Mobility Limited Company Details
Ola Electric Mobility Limited was founded in 2010 and is one of the biggest mobility platform in India. The company was founded by Ankit Bhati and Bhavish Aggarwal, having it’s headquarter located in Bangalore. The company is a pure electric vehicle (EV) player in India, developing vertically integrated technology and manufacturing capabilities for EVs and their components, including cells.
They produce EVs and essential components such as battery packs, motors, and vehicle frames at the Ola Future factory. Their business strategy centers on leveraging the electrification of mobility in India while also exploring opportunities to export their EVs to select international markets in the future.
Ola Electric has delivered four products and announced six new ones since their first product announcement in August 2021. They began delivering their first EV model, the Ola S1 Pro, in December 2021, followed by the Ola S1 in September 2022, the Ola S1 Air in August 2023, and the Ola S1 X+ in December 2023.
On August 15, 2023, they unveiled additional new EV scooter models: the Ola S1 X (2 kWh) and the Ola S1 X (3 kWh), alongside the Ola S1 X+. They also introduced a lineup of motorcycles with four models: Diamondhead, Adventure, Roadster, and Cruiser. Ola Electric plans to commence delivery of the Ola S1 X (2 kWh) and the Ola S1 X (3 kWh) in the first half of Fiscal 2025 and the motorcycles in the first half of Fiscal 2026.
The company became one of the best-selling electric two wheeler (E2W) brand in India in terms of monthly E2W registrations on the VAHAN Portal of the Ministry of Road Transport and Highways.
The company operates own direct-to-customer (D2C) omni-channel distribution network, which comprises of 935 experience centers and 414 service centers situated across India
As of October 31, 2023, it had a total of 3,733 on-roll employees and 2,844 off-roll employees.
Ola Electric IPO Details:
| Ola IPO Date | August 2, 2024 to August 6, 2024 |
| Ola Listing Date | August 9, 2024 |
| Face Value | ₹10 per share |
| Ola IPO Price Band | ₹72 to ₹76 per share |
| Ola Electric 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 of ₹10 (aggregating up to ₹645.56 Cr) |
| Employee Discount | Rs 7 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 3,687,072,258 |
| Share holding post issue | 4,410,756,468 |
Ola Electric Company Financials:
Over the last three financial years, the company’s total revenue and net profit are as follows:
- FY21: Total revenue of Rs 106 crore, net loss of Rs 199.23 crore
- FY22: Total revenue of Rs 456 crore, net loss of Rs 784.15 crore
- FY23: Total revenue of Rs 2,783 crore, net profit of Rs 1,472.08 crore
- FY24 (3M): Total revenue of Rs 1,278 crore, net loss of Rs 267.15 crore
The company has consistently grown revenue and covering its losses during this period.
- The average earnings per share (EPS) over the last three financial years is Rs. -3.91, and the average Return on Net Worth (RoNW) is -78.46%.
- The company’s issue is competitively priced at a price-to-book value (P/BV) of based on its Net Asset Value (NAV) of Rs. 13.72 as of December 31, 2023.
Amount in Crores (Rs.)
| 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 |
OLA Electric IPO Timeline:
OLA Electric IPO opens on August 2, 2024, and closes on August 6, 2024.
| IPO Open Date | Friday, August 2, 2024 |
| IPO Close Date | Tuesday, August 6, 2024 |
| Basis of Allotment | Wednesday, August 7, 2024 |
| Initiation of Refunds | Thursday, August 8, 2024 |
| Credit of Shares to Demat | Thursday, August 8, 2024 |
| Listing Date | Friday, August 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 6, 2024 |
OLA Electric IPO Reservation:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
OLA Electric IPO Lot Size:
Investors can place bids for a minimum of 195 shares and in multiples of this amount. Here is a table showing the minimum and maximum investments for retail investors and High Net-Worth Individuals (HNIs) in terms of shares and the corresponding amount:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 195 | ₹14,820 |
| Retail (Max) | 13 | 2535 | ₹192,660 |
| S-HNI (Min) | 14 | 2,730 | ₹207,480 |
| S-HNI (Max) | 67 | 13,065 | ₹992,940 |
| B-HNI (Min) | 68 | 13,260 | ₹1,007,760 |
OLA Electric IPO Promoter Holding:
The promoter of the Company is Bhavish Aggarwal.
| Share Holding Pre Issue | 85.77% |
| Share Holding Post Issue |
Ola Electric IPO GMP Details:
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Last Updated |
| 30-07-2024 | 76.00 | ₹13 | 1900/26600 | ₹89 (17.11%) | 30-Jul-2024 11:00 |
Ola Electric IPO Objectives :
The company aims to achieve the following through this offer:
- To raise Rs 5,500 crore through a fresh equity issue.
- Sell up to 95,191,195 Equity Shares by the Promoter Selling Shareholders.
It expects this strategic move to:
- To fund capital expenditure for the Subsidiary, OCT, aimed at expanding the cell manufacturing plant’s capacity from 5 GWh to 6.4 GWh, classified as phase 2 under the expansion plan.
- To repay or prepay, either in part or in full, borrowings obtained by the subsidiary OCT.
- For research and product development.
- To fund organic growth initiatives.
- For general corporate purposes.
Ola Electric Mobility Ltd IPO offerings:
Ola Electric initially filed a Draft Red Herring Prospectus (DRHP) for a combined Initial Public Offering (IPO) consisting of a fresh equity issue worth Rs. 5,500 crores and an offer for sale (OFS) of 95,191,195 equity shares.
OLA Electric IPO Lead Managers:
- Kotak Mahindra Capital Company Limited.
- Bofa Securities India Limited.
- Axis Capital Limited.
- SBI Capital Markets Limited.
- Citigroup Global Markets India Private Limited.
- Goldman Sachs (India) Securities Private Limited.
- ICICI Securities Limited.
- Bob Capital Markets Limited.
Risks associated with Ola Electric IPO:
- Ola Electric Technologies Private Limited and Ola Cell Technologies Private Limited, have incurred losses and negative cash flows from operations since inception.
- The company has limited operating history in manufacturing EVs and there is no assurance that they will be cost effective in their operations or profitable in the future.
- There could be disruptions in the supply or an increase in prices of components and raw materials used in the manufacture of their electric vehicles.
- Any reduction or elimination of government incentives or the ineligibility of any of our electric vehicles for such incentives would increase the retail price of our electric vehicles.
Product Portfolio and Industry Outlook
Ola Electric Mobility Ltd has a strong product portfolio of 4 EV scoters, including Ola S1, Ola S1 Pro, Ola S1 Air, and Ola S1 X+. They also have product pipeline of other new EV scooter models the Ola S1 X (kWh) and Ola S1 X (3kWh), along with that they have announced a new line of motorcycles that comprises of four models, including Adventure, Roadster, Cruiser, and Diamondhead.
Conclusion
Given Ola Electric’s strategic positioning as a pioneer of electric two wheeler, future product portfolio, and financials, applying for this IPO could be a worthy investment. The company’s impressive product line-up along with government’s constant support towards lowering India’s carbon footprint further solidifies its potential in this growing EV market.
Ola Electric Shares FAQs:
When will Ola Electric IPO open and close?
The IPO will open on 2 August 2024 and close on 6 August 2024
The IPO will open on 2 August 2024 and close on 6 August 2024
How much fund require to apply for Ola Electric IPO?
The minimum capital require to apply for Ola Electric IPO is Rs 14,820.
What is the lot size for the Ola Electric IPO?
OLA Electric IPO lot size is 195 Shares.
How to apply for Ola Electric IPO?
You can apply for the OLA Electric IPO online using either UPI or ASBA as a payment method or using your trading app. Also do check Unicorn Signals App, to get minute details of OLA IPO.
What is the allotment date for the IPO?
The Basis of Allotment for the OLA Electric IPO will be finalized on Wednesday, August 7, 2024. The allotted shares will be credited to your demate account by Thursday, August 8, 2024. You can check the OLA Electric IPO allotment status at that time.
When will the Ola Electric Shares list on?
The listing date for the OLA Electric shares has not been officially announced yet. The tentative listing date is Friday, August 9, 2024.
