Ola Electric Mobility Limited, a key player in the electric vehicle (EV) industry, is gearing up for its stock market debut with a significant offering. The IPO aims to raise ₹6,145.56 crores, with a new issuance of ₹5,500.00 crores through 72.37 crore shares and an offer for sale (OFS) of ₹645.56 crores through 8.49 crore shares. The shares are priced between ₹72 and ₹76 each. Investors should also consider how this IPO might influence the Nifty index.
About Ola Electric Mobility Ltd
Established in 2017, Ola Electric Mobility Limited has swiftly become a major player in the electric vehicle (EV) industry. The company specializes in manufacturing electric vehicles and essential components, such as battery packs, motors, and vehicle frames, at its state-of-the-art Ola Futurefactory.
Ola Electric's business model leverages three scalable platforms: an R&D and Technology Platform for internal EV development, a Production and Supply Chain Platform for flexible manufacturing, and a Direct-to-Consumer Omnichannel Sales Platform for integrated physical and online sales.
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 | 808626207 shares (aggregating up to ₹6145.56 Cr) |
Fresh Issue | 723684210 shares (aggregating up to ₹5500.00 Cr) |
Offer for Sale | 84941997 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 | 3687072258 |
Shareholding Post-Issue | 4410756468 |
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 | 7735.41 | 5573.17 | 5395.86 | 2112.64 |
Revenue | 5243.27 | 2782.70 | 456.26 | 106.08 |
Profit After Tax | -1584.40 | -1472.08 | -784.15 | -199.23 |
Net Worth | 2019.34 | 2356.44 | 3661.45 | 1970.62 |
Reserves and Surplus | -2882.54 | -1380.03 | -68.83 | 1999.30 |
Total Borrowing | 2389.21 | 1645.75 | 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. | 35.50 | 35.50 | 158.10 | 69.69 | 23.68 | 15.49 |
Eicher Motors Ltd. | 146.18 | 145.92 | 659.06 | 36.78 | 22.17 | 7.44 |
Bajaj Auto Ltd. | 272.70 | 272.70 | 1037.41 | 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.
How to Invest in Ola Electric Limited IPO
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Investing in the Ola Electric IPO is straightforward and secure with HDFC Sky. Follow these steps:
1. Open an HDFC Sky Account: Set up your account quickly and conveniently online.
2. Find the IPO: Locate the Ola Electric IPO on the HDFC Sky platform.
3. Invest with One Click: Choose the Ola Electric IPO and use your UPI ID for a seamless investment process.
While managing your investments, keep an eye on the Bank Nifty for additional market insights and trends.
