Ola Electric, India’s leading electric vehicle (EV) manufacturer, is set to make history with its upcoming Initial Public Offering (IPO). This will be the first IPO by an automaker in India in over two decades, following Maruti Suzuki's offering in 2003.
Based in Bengaluru, Karnataka, Ola Electric is India's largest electric two-wheeler manufacturer, valued at approximately $5.4 billion as of September 2023. The company's manufacturing facility in Krishnagiri, Tamil Nadu, is the largest two-wheeler EV manufacturing plant in India. Currently, Ola Electric offers the Ola S1 scooter in four variants: Ola S1 Air, Ola S1X, Ola S1, and S1 Pro. Ola Electric is also planning to launch electric motorcycles soon and an electric car by the end of 2024.
With Ola Electric planning a mega IPO worth Rs. 7250 Crore soon, below are all the important details you should know about the Ola Electric IPO:
Open Demat Account with us to start investing!
Shareholding Pattern of OLA Electric
The equity share capital of the company is distributed among three main categories of shareholders. The Promoter and Promoter Group hold 45.14% of the total shares. Public shareholders account for a slightly higher proportion at 47.19%. Additionally, an Employee Trust owns 7.67% of the shares. Bhavish Agarwal, the founder of the company, holds 36.94% stake in OLA Electric followed by Soft Bank which commands 21.98% of the company along with other major private equity investors such as Tiger Global, Indus Trust, and Alpha Wave who own 6.03%, 3.85% and 3.49%, respectively.
Fresh Issue and Offer for Sale
Ola Electric will allocate proceeds from its IPO towards capital expenditure, debt repayment, and research and development. Below is the breakup of how Ola Electric plans to use the funds raised from the IPO:
· Capital expenditure: ₹1,226 crores in capex
· Debt Repayment: ₹800 crores
· Research & Development: ₹1,600 crores and
· Organic Growth and expansion: ₹350 crores
The IPO includes a fresh issue of equity shares worth ₹5,500 crores and an offer for sale of over 95 million equity shares. As a part of the Ola Electric IPO’s offer for sale, Bhavish Aggarwal plans to sell up to 47.4 million shares (3.48% stake). Other key shareholders participating in the sale include Indus Trust, Tiger Global’s Internet Fund III, SoftBank Vision Fund, and Alpha Wave Ventures.
Upcoming IPOs to watch: Apply and invest in the future!
Financials
Ola Electric's financials have shown an impressive growth in the last few years with total revenue surging by 510% to ₹2,782 crore in FY23 from ₹456 crores in FY22, including both operational revenue and other income. The EBITDA profit/(loss) margin improved from -157% in FY22 to -43% in FY23. Despite this improvement, company's net loss nearly doubled to ₹1,472 crores in FY23 from ₹784.1 crore the previous year due to significantly higher expenses. Ola Electric's EBITDA loss stood at ₹1,318 crores in FY23, with total expenses rising to ₹3,383 crores from ₹1,240 crores in FY22.
Recent Funding Rounds
In 2024, Ola Electric secured ₹100 crores in debt from Alteria Capital, its second debt funding round of the year. This follows a $50 million debt funding round from EvolutionX two months earlier. The debentures carry an interest rate of 13.8% per annum, with an additional 2% monthly interest penalty for defaults. Over its funding history, Ola Electric, led by Bhavish Aggarwal, has raised over $1 billion in equity and debt.
Market Leadership
Ola Electric became the first Indian EV maker to sell over 300,000 units in a fiscal year, achieving retail sales of 326,428 units in FY24, an 88% increase from 172,791 units in FY2023. This success is driven by strategic price reductions and FAME subsidies up to ₹46,780 for the S1 range in early 2024. This led to record sales of 33,921 units in February and 50,545 units in March, the highest monthly sales for both Ola and any single OEM in India.
The company's market share increased to 35% in FY2024 from 24% in FY2023. Competing with Hero Electric, Ather Energy, and TVS, Ola Electric now controls 49% of the two-wheeler EV market, with 37,191 e-scooter registrations in May, according to Vahan data.
Future Prospects
Ola Electric's rapid growth and market dominance position it well for future expansion. With upcoming launches of electric motorcycles and cars, continued investment in R&D, and a strong financial strategy, Ola Electric is poised to maintain and extend its leadership in the Indian EV market.
Conclusion
Ola Electric is not just a pioneer in the Indian EV market but a testament to the potential of innovative and strategic growth in the automotive industry. As it gears up for its historic IPO, the company continues to set benchmarks for performance, market share, and future ambitions.
To invest in the Ola Electric IPO in a single click with a UPI-based mandate, you can open a Demat Account with Motilal Oswal for free and get complete assistance on your other stock investments as well. With Motilal Oswal, you can even pre-apply to the Ola Electric IPO before the IPO opens and make an early reservation. So are you ready for an electrifying ride yourself?
Trending Blogs: NSE Holidays 2024 | BSE Holidays 2024 | Invest in Small Cap & Mid Cap Mutual Fund & Stocks | Companies affected by Rise in Crude Oil Price | Fall in IT Stocks | Launch of 4 New Indices | Revised Lot Size of Nifty Contracts | Impact of RBI Circular on Currency Trading | RBI’s New Lending Guidelines | Electric Air Taxis in India
Financial Calculators: SIP Calculator | SWP Calculator | Compound Interest Calculator | EMI Calculator | FD Calculator | Retirement Calculator | Option Value Calculator | Inflation Calculator | Lumpsum Calculator