Ola Electric Mobility IPO
Ola Electric Mobility Limited is an electric vehicle company primarily engaged in manufacturing electric vehicles and core components such as battery packs, motors, and vehicle frames at its Ola Futurefactory. Product Launches & Announcements Since August 2021, Ola Electric has launched 7 new products and announced four additional ones:
December 2021: Ola S1 Pro (first EV model)
Subsequent Years: Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+
August 15, 2023: Announcement of new EV models and a range of motorcycles including Diamondhead, Adventure, Roadster, and Cruiser
Distribution Network As of October 31, 2023, Ola Electric operates an omnichannel distribution network across India, comprising:
Experience Centers: 870
Service Centers: 431 (including 429 within experience centers)
Online Presence: Ola Electric website
Export and Domestic Supply Approximately 75% of 2W exports from India by Ola Electric were destined for Africa, LATAM, and Southeast Asia. The domestic supply of E2W was limited. Business Model
Ola Electric's business model relies on three key scalable platforms:
R&D and Technology Platform: In-house design and development of EV technologies and components.
Adaptable Production and Supply Chain Platform
D2C Omnichannel Sales Platform
Objects of the Issue
Capital expenditure
Repayment/pre-payment of debt
Investment into research and development of products
General corporate purposes
OLA Electric IPO - Key Details
IPO Dates: 2 to 6 August, 2024
Price Band : ₹72 to ₹76 per share
Lot Size: 195 shares
Total Issue size: ₹6145.56 Crores
Retail Quota: 10 %
GMP: Nil ( For Informational purposes only )
Key Risks and Concerns
Competitive Intensity: The competitive market may lead to downward pricing pressures, requiring further price reductions for EVs. This could result in reduced profitability and adversely impact the business.
Loss-Making Entity: Ola Electric has incurred losses for the past three fiscal years (FY22, FY23, and FY24). The company reported a loss of Rs. 784 crore in FY22, which widened to Rs. 1,584 crore in FY24.
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