Ola Electric IPO Key Details and Market Impact

Ola Electric's upcoming Initial Public Offering (IPO) is creating considerable excitement in the financial sector. Ola Electric Mobility Limited, a prominent player in the electric vehicle (EV) industry, is set to debut on the stock market with a substantial offering. The IPO aims to raise ₹6,145.56 crores, including ₹5,500.00 crores from a new issuance of 72.37 crore shares and ₹645.56 crores from an offer for sale (OFS) of 8.49 crore shares. The share price is set between ₹72 and ₹76. Investors should also consider how this IPO might affect theNifty Bank 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

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

RеtailInvеstors:

• 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.

35.50

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

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.

How to Invest in Ola Electric Limited IPO

For investors seeking a straightforward and user-friendly method for IPO investments, the One-Click IPO feature offers significant advantages. This innovative platform simplifies the IPO application process, enhancing accessibility and efficiency. HDFC Sky provides a comprehensive solution for managing IPO investments seamlessly, catering to those who prefer a streamlined approach.

Investing in the Ola Electric IPO is both easy 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: Explore the upcoming Ola Electric IPO on the HDFC Sky platform.

3. Invest with One Click: Select the Ola Electric IPO and use your UPI ID for a seamless investment experience.

Stay informed about the market trends to make the most of your investment opportunities.

(Disclaimer : The above Press Release is provided by HT Syndication and PTI will not take any editorial responsibility of this content.). PTI PWR
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