Summary Bhavish Aggarwal’s Ola Electric Mobility is drawing a lot of attention as it plans one of the biggest IPOs this year. The company has grown quickly and holds a large share of the electric scooter market. However, it faces challenges like strong competition and financial losses. Investors are being careful, looking for signs of profitability and steady growth, especially with changes in technology and government subsidies.
History
Ola Electric, a subsidiary of the Indian ride-hailing firm Ola, was founded in 2017 with the goal of producing affordable and eco-friendly electric vehicles. In the years that followed, the company concentrated on developing electric scooters and secured significant funding to fuel its growth. By 2019, Ola Electric announced plans for a major manufacturing facility, the Ola Futurefactory. The company launched its first electric scooters, the Ola S1 and S1 Pro, in 2020, which gained significant market attention for their innovative design and competitive prices. Deliveries began in 2021, and by 2022, Ola Electric had broadened its product range and improved its charging infrastructure. As of 2023, the company is gearing up for a major initial public offering (IPO), showcasing its rapid expansion and market potential, although it faces challenges like fierce competition and the need to achieve consistent profitability.
IPO DATE
| Bidding Date : | August 2, 2024 to August 6, 2024 |
| Number of shares being shares being offered. : | 808,626,207 shares (aggregating up to ₹6,145.56 Cr) |
| Price range for the shares : | ₹72 to ₹76 per share |
| Expectation valuation of the company : | $4.2 billion to $4.4 billion. |
| Stock Exchange where shares the will be listed : | Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). |
Ola electric mobility Financial performance result :- Revenue, profits and loss metrics and ratios
| 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 |
GMP Review :
Ola Electric shares are currently available at a reduced price in the unlisted market. Today, the Grey Market Premium (GMP) for the Ola Electric IPO is in the negative range, according to stock market experts. It’s important to note that the GMP is only a tentative indicator of the IPO’s listing price and should not be used as the sole basis for investment decisions.