Ola Electric IPO Details: Price, Date, Lot Size, GMP — Should you apply? 

Ola Electric, a pioneer in India’s electric vehicle (EV) market, is set to make waves with its upcoming Initial Public Offering (IPO) scheduled for August 2024. With two of India’s largest EV manufacturing facilities for two-wheelers and popular models like the Ola S1 Air, S1X, and S1 Pro, the company is at the forefront of India’s transition to sustainable mobility. 

As Ola Electric gets ready to go public, industry observers and investors are closely monitoring this significant turning point in the company’s development as well as its possible effects on India’s EV market.

About Ola Electric

After starting its journey in 2017, Ola Electric, headquartered in Bangalore, has now expanded its operations in multiple locations in India, including Tamil Nadu and Krishnagiri. With India’s two biggest EV manufacturing factories for two-wheelers, the company has launched three popular models named Ola S1 Air, Ola S1X, and Ola S1 Pro as of July 2024.

 

The company is a wholly-owned subsidiary of ANI Technologies, which is the parent company of Ola Cabs. Ola Electric has started to bring about a change in electric mobility for the masses and reduce the dependency on fossil fuels and emissions. 

What started as Founder Bhavish Aggarwal’s 92.5% stake purchase in the company, making it a spun-off entity, has now acquired Etergo in 2020 and expanded to a $3 million valuation in 2021. 

The company is set to launch its IPO to raise ₹5,500 crores among upcoming IPOs this year. The Ola IPO date is August 2, 2024, with an Ola Electric IPO GMP of ₹12-13.

Also read: Interim Union Budget 2024 Highlights: India’s Roadmap to 2025

Ola Electric IPO details

Ola Electric IPO comes with a book-built issue of ₹6,145.56 crores with a combination of fresh issues up to ₹5,500 crores and an offer sale of up to ₹645.56 crores. The Ola Electric IPO will be listed on the NSE and BSE, with the Ola Electric IPO price band at ₹72-₹76/share.  

For retail investors, a minimum investment of ₹14,820 is needed. A minimum lot size investment of ₹207,480 for sNII and ₹1,007,760 for bNII is 14 lots or 68 lots, respectively. 

For more information, refer to Ola Electric Red Herring Prospectus.

Ola Electric IPO date	August 2 to August 6, 2024
Face Value	₹10 per share
Price Band	₹72 to ₹76 per share
Lot Size	195 Shares
Total Issue Size	up to ₹6,145.56 Cr
Fresh Issue	up to ₹5,500.00 Cr
Offer for Sale	84,941,997 shares of ₹10
Issue Type	Book Built Issue IPO
Employee Discount	₹7 per share

Objectives of the Ola Electric IPO

The business has outlined several key initiatives for utilising the net proceeds.

• Primarily, they plan to fund Phase 2 of their expansion project. This phase will involve capital expenditures through their subsidiary, OCT, aimed at increasing the capacity of cell production facilities from 5 GWh to 6.4 GWh.

• Another significant portion of the proceeds will be allocated to the repayment or prepayment, either in whole or in part, of the debt accrued by their subsidiary OET.

• The company also intends to invest in organic growth efforts, allocating funds to support various expansion initiatives. Additionally, they plan to direct resources towards research and product development, which should help maintain their competitive edge in the market.

• Lastly, a portion of the proceeds will be reserved for general corporate objectives.

Ola Electric financials

	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ Crore)	7,735.41	5,573.17	5,395.86
Revenue (₹ Crore)	5,243.27	2,782.70	456.26
Profit After Tax (₹ Crore)	-1,584.40	-1,472.08	-784.15
Net Worth (₹ Crore)	2,019.34	2,356.44	3,661.45
Reserves and Surplus (₹ Crore)	-2,882.54	-1,380.03	-68.83
Total Borrowing (₹ Crore)	2,389.21	1,645.75	750.41

Also read: Suzlon Energy Q1 FY25 results release: Should you buy SUZLON?

Should you apply for the Ola Electric IPO?

Now that we have discussed Ola Electric IPO details, let’s have a look at whether it’s a good idea to apply for the Ola Electric IPO. 

Strengths 

• The EV space is growing in India, with 1.7 million units sold in FY24, and Ola is making its name in the two-wheeler market. Ola Electric is striving to be a renowned force in India’s EV space as a pure electric vehicle company. 
• Another key strength of Ola Electric is its impressive revenue growth. The company has shown a remarkable increase in revenue over the past three years. From March 31, 2022, to March 31, 2024, Ola Electric’s revenue grew from ₹456.26 crore to ₹5,243.27 crore.
• This exponential revenue growth demonstrates Ola Electric’s strong market traction and increasing demand for its products. It suggests that the company is successfully capturing a significant share of the growing electric vehicle market in India, particularly in the two-wheeler segment. 
• The company’s internal ability to develop EV technology is fueled by its emphasis on research and development. In addition, Ola carries out research and development (R&D) in the US, the UK, and India to create cutting-edge electric vehicle (EV) products and vital EV components, including motors, battery packs, and vehicle chassis. 

Weaknesses

• Ola Electric only has a small selection of scooter models available at the moment, which may restrict its attractiveness to a wider range of consumers with different demands. It can require time and resources to establish a strong service and after-sales network throughout India.

Apply for Ola Electric IPO here

Conclusion

Ola Electric has positioned itself as a key player in India’s growing EV market. However, challenges such as a limited product range and the need for a robust service network remain. As the company seeks to raise funds for expansion, debt repayment, and further innovation, the success of this IPO could be a crucial indicator of investor confidence in India’s EV sector. 

While the road ahead may have its bumps, Ola Electric’s public offering marks an important step in the evolution of India’s electric mobility ecosystem.

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