About the Company:
OLA Electric Mobility Ltd is a pure EV player in India and are building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells.
Company manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory.
Company’s business focuses on capturing the opportunity arising out of electrification of mobility in India and also seek opportunities to export EVs in select international markets in the future.
Company has delivered four products and additionally announced six new products since our first product announcement in August 2021.
Company has announced a line-up of electric motorcycles comprising four models, Diamondhead, Adventure, Roadster and Cruiser and plans to commence delivery of motorcycles in the first half of Fiscal 2026.
Company had the highest revenue of all Indian incorporated electric 2Ws (“E2Ws”) original equipment manufacturers (“OEMs”) from E2W sales in Fiscal 2023.
Within nine months of delivering the first EV scooter in December 2021, OLA became the best-selling E2W brand in India in terms of monthly E2W registrations.
Company’s Product Launches:
Pursuant to research and product development capabilities, Company has delivered four products and additionally announced six new products since our first product announcement in August 2021.
Company commenced delivery of first EV model, the Ola S1 Pro, in December 2021. This was followed by the delivery of the Ola S1 in September 2022, the Ola S1 Air in August 2023 and the Ola S1 X+ in December 2023.
On August 15, 2023, Company announced other new EV scooter models, the Ola S1 X (2 kWh) and the Ola S1 X (3 kWh), in addition to the Ola S1 X+, as well as a line-up of motorcycles comprising four models, Diamondhead, Adventure, Roadster and Cruiser.
Company plans to commence delivery of the Ola S1 X (2 kWh) and the Ola S1 X (3 kWh) by the first half of Fiscal 2025 and the motorcycles in the first half of Fiscal 2026.
Company’s Products:
Company’s Installed Capacity and Capacity Utilization rate of the Ola Futurefactory:
Number of Scooters Delivered by the Company:
*Delivery means the date when the scooter is physically handed over to the customer.
Company’s Research and development (“R&D”):
Research and development (“R&D”) and technology is at the core of our business model with a focus on in-house product innovation.
Company undertakes R&D activities in India, the United Kingdom (“UK”) and the United States (“US”) focused on designing and developing new EV products and core EV components, such as battery packs, motors and vehicle frames.
About Ola Futurefactory & Upcoming Ola Gigafactory:
Company is in the process of building a EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu, India, which includes Ola Futurefactory, and upcoming Ola Gigafactory and co-located suppliers in Krishnagiri district.
At Ola Futurefactory, Company manufactures EV scooters using certain EV components manufactured in-house and other components procured from third parties, such as cells.
The Ola Futurefactory is the largest integrated and automated E2W manufacturing plant in India (in terms of production capacity) by an E2W-only OEM, as of September 30, 2023.
In addition, Company operates a BIC (Battery Innovation Center) in Bengaluru, India that is focused on developing cell and battery technology and manufacturing processes for our forthcoming cell manufacturing at the Ola Gigafactory.
Company’s Distribution Network:
Company operate our own direct-to-customer (“D2C”) omnichannel distribution network comprising 935 experience centres and 414 service centres (of which 410 service centres are located within experience centres) situated across India, in addition to Ola Electric website.
Company’s Charging Facilities for OLA customers:
In addition to facilitating home charging through portable chargers, company currently offers customers exclusive charging services through our charging network, which comprised 224 hyper charger guns and 764 standard charger guns across 17 and 21 states, respectively, as of October 31, 2023.
OLA EV scooter owners can achieve a 50 km driving range on a 15-minute charge at our hyper charger guns.
OLA EV scooter owners currently charge their EV scooters at our standard and hyper charger guns for free until December 31, 2023, after which, company may charge for such services.
Company’s charger guns are exclusively for the use of Ola EV scooter owners and are currently not accessible to other scooter users.
Proposed schedule of implementation and deployment of Net Proceeds: (in millions)
Management Team:
- Mr. Bhavish Aggarwal (Designation: Chairman and Managing Director)
- Mr. Krishnamurthy Venugopala Tenneti (Designation: Non-Executive Director)
Objectives of the Issue:
Fresh Issue: (Rs.5000 cr)
- Capital expenditure to be incurred by our Subsidiary, OCT for expansion of the capacity of our cell manufacturing plant
from 5 GWh to 6.4 GWh, classified as phase 2 under the expansion plan (the “Project”). - Repayment or pre-payment, in full or part, of the indebtedness incurred by our Subsidiary, OET.
- Investment into research and product development.
- Expenditure to be incurred for organic growth initiatives.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Capital expenditure to be incurred by our Subsidiary, OCT for the Project | 1226.4 cr |
| Repayment or pre-payment, in full or part, of the indebtedness incurred by our Subsidiary, OET | 800 cr |
| Investment into research and product development | 1600 cr |
| Expenditure to be incurred for organic growth initiatives | 350 cr |
The Ola Gigafactory will be set up and expanded in phases as set out below: (image)
Positives for the Company:
India is emerging as a manufacturing powerhouse of EVs.
- India is the second largest 2W market globally and third largest in the 4W market in terms of domestic sales.
- The trend towards electrification of mobility is driven by increasing affordability of EVs attributable to lower battery prices, improved EV driving ranges and regulatory support amongst other factors.
- E2Ws (Electric 2 Wheelers ) are at the forefront of the electrification of mobility in India due to their favourable total cost of ownership (“TCO”).
- E2W adoption has grown rapidly to reach approximately 5.1% of total 2W registrations in India the first half of Fiscal 2024. E2Ws are projected to account for 41-56% of the domestic 2W sales volume by Fiscal 2028.
Company has Strong Manufacturing Capabalities.
- Company built the Ola Futurefactory in eight months, reaching an installed capacity of one million units per year as of October 31, 2023.
- Company manufactures EVs and certain core EV components like battery packs, motors and vehicle frames (starting on August 1, 2023) at the Ola Futurefactory.
- This, combined with company’s in-house design and R&D capabilities, enhance our control over EV scooter quality and performance, optimize costs and enable us to achieve fast time to market and scalability.
- Company’s also building our EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu, India, which is expected to span up to 2,000 acres of land, and includes our Ola Futurefactory and upcoming Ola Gigafactory for cell manufacturing in Krishnagiri district and co-located suppliers in Krishnagiri district.
Pure EV player with a leadership position in the fast-growing Indian E2W market.
- OLA is the largest E2W seller in India by number of units registered in the six-months period ended September 30, 2023, accounting for approximately 31% of the total E2W registrations in India.
- OLA is a pure EV company and our R&D and technology including in-house design, engineering, manufacturing, are all singularly focused on building EV products.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th June 23 |
|---|---|---|---|---|
| Revenue | 106.08 | 456.2 | 2782.6 | 1278.6 |
| Net Profit | (-199.2) | (-784.1) | (-1472.0) | (-267.1) |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | Will be Updated |
| Equity Shares Offered (Fresh) | Will be Updated |
| Equity Shares Offered (OFS) | Will be Updated |
| Total Equity Shares Offered (Fresh + OFS) | Will be Updated |
| Equity Shares Prior to the Issue | Will be Updated |
| Equity Shares after the Issue | Will be Updated |
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
Also Read: List of Upcoming SME IPO’s in India.>>
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| (-3.91) | N.A | (-62.47) | 6.26 |
| Should You Subscribe or Not ? |
|---|
| OLA Electric Mobility Ltd is emerging as a dominant force in India’s electric vehicle (EV) market, positioning itself as a frontrunner in the transition to sustainable mobility. As a pure EV player, OLA is strategically focused on vertically integrating technology and manufacturing capabilities for EVs and their components, including cells.
Its commitment to innovation and production efficiency is evidenced by the construction of key facilities like Ola Futurefactory and the forthcoming Ola Gigafactory. In fiscal year 2023, OLA Electric Mobility Ltd achieved the highest revenue among all Indian electric two-wheeler (E2W) original equipment manufacturers (OEMs), reflecting its strong market presence and consumer demand. Within a remarkably short span, OLA captured the market’s attention by becoming the best-selling E2W brand in India, just nine months after delivering its first EV scooter in December 2021, as indicated by monthly E2W registrations. Considering the burgeoning EV market in India and OLA’s promising trajectory, Markets Guruji recommends seizing the opportunity presented by its IPO to capitalize on the anticipated EV boom. |
| Company Contact Info: |
|---|
| OLA Electric Mobility Ltd Regent Insignia, #414 3rd Floor, 4th Block, 17th Main 100 Feet Road, Koramangala Bengaluru 560 034 Karnataka, India. Tel: +91 80 3544 0050 Email: ipo@olaelectric.com Website: www.olaelectric.com |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West Mumbai 400 083 Maharashtra, India Tel: +91 810 811 4949 E-mail: olaelectric.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
