Ola Electric to raise ₹5,500 crore via IPO - Ola Electric IPO Details

Ola Electric IPO Details

 

Ola Electric, has filed draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) with a targeted fundraising of ₹5,500 crore. Backed by major investors such as SoftBank and Temasek, Ola Electric's IPO marks a significant milestone for the Indian electric vehicle industry.

DRHP Details

• Date Filed: December 15, 2023
• Amount Raised: Rs 7250 crore (approximately $662 million)

IPO Objectives

• Expand manufacturing capacity of electric vehicle cell factory (from 5 GWh to 6.4 GWh), net proceeds of up to ₹1226.4 crore from the fresh issue will be used for capital expenditure to be incurred by the subsidiary, Ola Cell Technologies (OCT) for the Ola Gigafactory project
• Develop new electric vehicle models - ₹1,600 crore will be used towards investment into research and development (R&D)
• Repayment of borrowings - ₹800 crore will be used to repay/pre-pay the indebtedness incurred by subsidiary, Ola Electric Technologies (OET).
• General corporate purposes - ₹350 crore will be utilised for organic growth initiatives and general corporate purposes

IPO Reservation Details

• Retail: 35%
• QIB: 50%
• NII: 15%

Business Model

• Manufacture and sell electric two-wheelers and four-wheelers
• Offer ride-hailing services with electric vehicles
• Build and operate a network of charging stations

Last 5 Years' Financial Performance

Year	Sales (Cr)	Net Profit/Loss	Reserves (Cr)	Assets (Cr)	Debt (Cr)
2018-19	58.7	-1382.9	-576.8	1425.4	3327.3
2019-20	2109.5	-2409.8	-2209.8	3805.7	5966
2020-21	689.6	-3306.9	-3355.8	3329.1	4905
2021-22	2305.2	-3655.3	-4297.7	6221	7983.9
2022-23 (H1)	1407.4	-1505	-5702.7	7602.9	10052.6

Positives of Ola Electric IPO

First mover advantage in the Indian electric vehicle market

Strong brand recognition and established customer base

Vertically integrated business model with control over manufacturing and distribution

Government support for electric vehicle adoption in India

Potential for high growth in the electric vehicle market

Negatives of Ola Electric IPO

Losses in recent years and lack of profitability

Increased competition from established automakers and new entrants

Please note that the information provided above is based on publicly available information and may not be entirely accurate. It is strongly recommended to conduct your own research and consult with a financial advisor before making any investment decisions.

DISCLAIMER: This article by Eivod is general in nature. We provide investment opinions, based on historical data and our articles are not intended to be investment advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis, driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.