1. Ola Electric IPO Size
The Bhavish Aggarwal-led electric vehicle firm is expected to raise Rs 5,500 crore in fresh capital via the IPO, apart from the offer-for-sale (OFS) component.
The Softbank-backed company’s founder Bhavish Aggarwal will offload 37.9 million shares in the IPO, the documents disclosed. The firm’s investors Alpha Wave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares via the OFS as per the draft filing with the regulator.
2. Ola Electric IPO Date
The issue, which will open for institutional investors a day earlier on Thursday, will close for retail subscriptions on Aug. 6, the final IPO prospectus filing showed.
3. Ola Electric valuation
Ola is expecting a lower valuation than in its last funding round in September led by Singapore’s investment firm Temasek, which valued it at $5.4 billion. Reuters reported that Ola’s expected valuation is about 18.5% to 22% lower than its last funding round in September. The public offering is likely to value the company between $4.2 billion and $4.4 billion. Ola Electric initially aimed for a $6-7 billion valuation but has since tempered its expectations.
4. Financial performance
Ola Electric’s revenue from operations increased to Rs 5,009.8 crore in fiscal 2024, up from Rs 2,630.9 crore in fiscal 2023. This growth was primarily driven by increased sales of the Ola S1 and Ola S1 Pro scooters and the commencement of deliveries of the Ola S1 Air and Ola S1 X+ in fiscal 2024.However, the company’s loss for the year increased to Rs 1,584.4 crore in fiscal 2024, up from a loss of Rs 1,472 crore in fiscal 2023.
5. Sales of Ola Scooters
In fiscal 2024, Ola sold 329,618 scooters, compared to 156,251 scooters sold in fiscal 2023.
6. Business dynamics
Ola Electric dominates the electric scooter segment in India, often garnering over a third of the market. It competes with the likes of Hero MotoCorp-backed Ather Energy, Bajaj Auto and TVS Motors.
As of July 27, Ola Electric held a 39% market share for the month in the electric two-wheeler market with competitors like Bajaj, TVS Motors and Ather increasing their share of sales, according to data from the government’s transportation portal Vahan. In June, Ola Electric’s market share was at 46%, which itself was lower than the 58% market share it held in May.
7. Net proceeds
Ola Electric is looking to use Rs 1,227 crore of the total net proceeds from the IPO to expand the capacity of its battery cell manufacturing plant, called Ola Gigafactory, from 5 gigawatt hours (GWh) to 6.4 GWh. The plant aims to reach the 6.4 GWh capacity by the end of April 2025, it added in the RHP.
The firm will use Rs 800 crore from the total net proceeds to repay loans taken on by its unit Ola Electric Technologies. It will invest Rs 1,600 crore into research and product development, and Rs 350 crore into growth initiatives.
8. First EV startup IPO
Markets regulator SEBI gave its approval for the IPO last month. This would be the first by an EV startup in India and will be among the biggest new-age IPOs in 2024.
9. Lead manager
The book-running lead managers to the offer are Kotak, Citi, BofA Securities, Goldman Sachs, Axis, I-Sec, SBICAP and BOBCAPS.
10. Registrar
Link Intime India Private Limited is the registrar of the issue.