The IPO will consists of a fresh issue of equity shares aggregating up to Rs 5,500 crore and an offer for sale (OFS) of equity shares worth Rs 645.6 crore by the promoters.
Read more at: https://www.deccanherald.com/business/companies/ola-electric-ipo-plans-to-raise-rs-6-100-crore-3127326
Ola Electric IPO will be open for public subscription between August 2 and August 6, while its anchor will be opened on August 1.
Ola Electric Mobility has fixed the price band of its IPO in the range of Rs 72-76 a share.
Ola Electric Mobility has fixed the price band of its IPO in the range of Rs 72-76 a share. The IPO will be open for public subscription between August 2 and August 6, while its anchor will be opened on August 1.
The Bhavish Aggarwal-owned company’s public issue is a widely anticipated IPO among investors, and its market debut next month will be one of India’s biggest IPOs this year. It will also become India’s first-ever EV two-wheeler to list on the bourses.
As the IPO rules mandate the IPO to follow T+3 (closing date + 3 days) for listing, the Ola IPO listing will likely take place on August 9.
Brokerage firm Master Capital Services Ltd in its IPO note said that as India focuses on reducing its carbon footprint and enhancing energy security, Ola Electric’s IPO could be a pivotal development in the green mobility space. This IPO includes a fresh issue of shares worth Rs 5,500 crore. Allocation of IPO Proceeds; A) Expanding Ola Gigafactory’s cell manufacturing capacity B) Debt repayment C) Research and development initiatives D) Organic business expansion E) General purposes. With a 35% market share in India’s electric two-wheeler market in FY24, up from 21% in FY23, Ola Electric sold 3.29 lakh units in FY24, more than doubling its sales from the previous year.
“IPO not only showcases Ola Electric’s growth and market leadership but also highlights the potential of the EV sector. Investors are encouraged to review the company’s prospectus, financial statements, and risk factors before making any investment decisions,” it added.
Ola, though still loss-making, has gained a 46% market share in e-scooters in the three years since it was founded.
Ola founder Bhavish Aggarwal already has an e-scooter factory in Tamil Nadu. In 2022, he said he would build a new plant within the same campus with capacity to manufacture 1 million electric cars a year. The cars, he said, would be designed to break the national trend of dull, small or midsized vehicles.
Ola Electric filed its draft red herring prospectus (DRHP) with the market regulator Sebi on December 22, 2023.
Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps and BoB Caps are the investment banks working on the deal. Law firm Cyril Amarchand Mangaldas is the company counsel.
According to draft red herring prospectus, existing shareholders were said to sell 95.19 million shares in the OFS. Founder Bhavish Aggarwal will be selling 47.3 million shares. The firm’s initial investors — AlphaWave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares via the OFS as per the draft filing with the regulator.
As per the draft papers, Ola Electric will utilise the proceeds for capex, repaying debt, and research and development (R&D).
Aggarwal laid out plans in 2022 to launch an electric sports car with an all-glass roof in two years that could reach 100 km per hour within four seconds. The company has suspended its electric car launch plans as the Softbank-backed company wants to focus on its e-scooter business, according to a Reuters report citing two people with direct knowledge of the decision.
Aggarwal reiterated those plans as recently as September 2023 in an interview with Forbes, but the two sources said the project is now suspended ahead of its planned August IPO, where it is set to raise around $660 million.
Ola’s “focus is all on the two-wheeler market, including bikes, and mass electrification is still some time away – you need to have (charging) infrastructure,” the first source told Reuters.
The suspension of Ola’s plan for electric cars, which could have competed with likes of Tata Motors in the nascent yet fast growing space, shows how challenges such as a lack of charging infrastructure in India weigh on plans.
E-scooters have become popular in the country in recent years and infrastructure has been built fast. Around 483,000 e-scooters were sold this year by June, but that period saw only about 45,000 electric car sales in the world’s third-biggest auto mark
OLA Electric IPO is a book built issue of Rs 6,145.56 crores. The issue is a combination of fresh issue of 72.37 crore shares aggregating to Rs 5,500.00 crores and offer for sale of 8.49 crore shares aggregating to Rs 645.56 crores.
OLA Electric IPO opens for subscription on August 2, 2024 and closes on August 6, 2024. The allotment for the OLA Electric IPO is expected to be finalized on Wednesday, August 7, 2024. OLA Electric IPO will list on BSE, NSE with tentative listing date fixed as Friday, August 9, 2024.
OLA Electric IPO price band is set at ₹72 to ₹76 per share. The minimum lot size for an application is 195 Shares. The minimum amount of investment required by retail investors is ₹14,820. The minimum lot size investment for sNII is 14 lots (2,730 shares), amounting to ₹207,480, and for bNII, it is 68 lots (13,260 shares), amounting to ₹1,007,760.
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 and Bob Capital Markets Limited are the book running lead managers of the OLA Electric IPO, while Link Intime India Private Ltd is the registrar for the issue.
Refer to OLA Electric IPO RHP for detailed information.
OLA Electric IPO Details
| IPO Date | August 2, 2024 to August 6, 2024 |
| Listing Date | [.] |
| 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 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 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 Timeline (Tentative Schedule)
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 Lot Size
Investors can bid for a minimum of 195 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and 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 |
| Lot Size Calculator | |||
OLA Electric IPO Promoter Holding
The promoter of the Company is Bhavish Aggarwal.
| Share Holding Pre Issue | 85.77% |
| Share Holding Post Issue |
About Ola Electric Mobility Limited
Founded in 2017, Ola Electric Mobility Limited is an electric vehicle company that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
Since August 2021, the company has launched seven new products and announced four. The Ola S1 Pro, the first EV model, was delivered in December 2021, followed by the Ola S1, Ola S1 Air, Ola S1 X and Ola S1 X+ in the following years. On August 15, 2023, the company announced new EV models and a range of motorcycles including Diamondhead, Adventure, Roadster, and Cruiser.
As of October 31, 2023, the company operates its “omnichannel distribution network across India, comprising 870 experience centers and 431 service centers (including 429 service centers in experience centers), in addition to the Ola Electric website.
In FY 2023, around 75% of 2W exports from India were destined for Africa, LATAM, and South East Asia, while teh domestic supply of E2W was limited.
The business model relies on three key scalable platforms:
- The R&D and technology platform with in-house design and development of EV technologies and components,
- The adaptable production and supply chain platform and
- The D2C omnichannel sales platform
As of March 31, 2024, the company had 959 employees (including 907 permanent employees and 52 freelancers) who focus on research and development. They are dedicated to product development, vehicle and software development, vehicle design, and cell development.
Ola Electric Mobility Limited Financial Information (Restated Consolidated)
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.
| 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 |
| Amount in ₹ Crore | ||||
Key Performance Indicator
The market capitalization of OLA Electric IPO is Rs 33521.75 Cr.
KPI as of March 31, 2024.
| KPI | Values |
|---|---|
| RoNW | -78.46% |
| P/BV | 13.72 |
Check OLA Electric IPO Peer Comparison here.
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | -4.3 | -3.59 |
| P/E (x) | -17.69 | -21.16 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of March 31, 2024 that is available in RHP.
Objects of the Issue (OLA Electric IPO Objectives)
The company proposes to utilise the Net Proceeds towards funding the following objects:
- 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”);
- Repayment or pre-payment, in full or part, of the indebtedness incurred by its Subsidiary, OET;
- Investment into research and product development;
- Expenditure to be incurred for organic growth initiatives; and
- General corporate purposes.
OLA Electric IPO Prospectus
OLA Electric IPO Rating
10
2.3
Rating:
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Ola Electric Mobility Limited Contact Details
Ola Electric Mobility Limited
Regent Insignia, #414, 3rd Floor, 4th Block
17thMain100 Feet Road, Koramangala
Bengaluru 560034
Phone: +91 80 3544 0050
Email: ipo@olaelectric.com
Website: https://www.olaelectric.com/
OLA Electric IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: olaelectric.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
OLA Electric IPO – Buy or Not
OLA Electric IPO Recommendation Summary
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OLA Electric IPO Lead Manager(s)
- Kotak Mahindra Capital Company Limited (Past IPO Performance)
- Bofa Securities India Limited (Past IPO Performance)
- Axis Capital Limited (Past IPO Performance)
- SBI Capital Markets Limited (Past IPO Performance)
- Citigroup Global Markets India Private Limited (Past IPO Performance)
- Goldman Sachs (India) Securities Private Limited (Past IPO Performance)
- ICICI Securities Limited (Past IPO Performance)
- Bob Capital Markets Limited (Past IPO Performance)