Ola Electric Mobility Limited

About Ola Electric Mobility Limited  Incorporated in 2017, Ola Electric Mobility Limited manufactures Electric Vehicles (EVs) and EV components like battery packs, motors, and vehicle frames. In FY23, Ola Electric had the highest revenue among all Indian-incorporated electric two-wheelers (E2Ws) original equipment manufacturers (OEMs) from E2W sales.  Its current product portfolio includes EV scooters such as the Ola S1 Pro, Ola S1 Air, Ola S1 X+, Ola S1 X (2 kWh), Ola S1 X (3 kWh), and the Ola S1 X (4 kWh). It has also announced a line of E2W motorcycles comprising the Cruiser, the Adventure, the Roadster, and its flagship motorcycle, the Diamondhead. It expects to begin delivery of the motorcycles in the first half of FY26.  Ola Electric Mobility aims to capture the opportunity arising from the electrification of mobility in India and also seeks opportunities to export EVs to select international markets in the future.  The company has the largest integrated and automated E2W manufacturing plant in India - the Ola Futurefactory and a battery innovation centre (BIC) in Bangalore as of 31 March 2024. It carries out its R&D operations in India, the United Kingdom and the United States. Additionally, it is in the process of building an EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu, India, including the Ola Futurefactory, its upcoming Ola Gigafactory and co-located suppliers in Krishnagiri district.  As of 31 March 2024, it operated a direct-to-customer (D2C) distribution network comprising 870 experience centres and 431 service centres across India, in addition to its Ola Electric website. It also offered 250 hypercharger guns and 764 standard charger guns across 17 and 21 states, respectively.  Between FY22 and FY24, the company saw a CAGR rise of 137% in its revenue from operations. However, the company has incurred losses in the last three financial years due to high operating costs and business expansion.  The company is well-positioned to seek benefits as India is the second largest 2W market globally, E2Ws are projected to account for 41-56% of the domestic 2W sales volume by FY28, and India has a favourable environment for the electrification of mobility through schemes such as FAME and PLI.  And now, Ola Electric Mobility Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹6,145.5 crore, comprising fresh issue, aggregating to ₹5,500 crore, as well as an offer for sale, aggregating to ₹645.5 crore. The money raised from the fresh issue will be utilised as capital expenditure at its subsidiary, to repay indebtedness, to invest in R&D, to expend on inorganic growth initiatives, and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Ola Electric Mobility IPO:     Company Name  Ola Electric Mobility Limited   Company Type  Private    Company Established On  2017   Ola Electric Mobility IPO Opening Date  2nd August 2024    Ola Electric Mobility IPO Closing Date  6th August 2024   Ola Electric Mobility IPO Allotment Status  7th August 2024    Credit of Shares to the Demat Account  8th August 2024   Ola Electric Mobility IPO Listing Date  9th August 2024    Ola Electric Mobility IPO Face Value  ₹ 10 per share   Ola Electric Mobility IPO Lot Size  195 shares    Ola Electric Mobility IPO Issue Size  Approx ₹ 6,145 crore   Ola Electric Mobility IPO to be Listed on  BSE, NSE    Ola Electric Mobility IPO Price band  ₹ 72 – ₹ 76 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 373 crore  ₹ 2,630 crore  ₹ 5,009 crore    Net Profit/Loss  ₹ -784 crore  ₹ -1,472 crore  ₹ -1,584 crore              Here’s a quick look at Ola Electric Mobility Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Pure EV player with a leadership position in the fast-growing Indian E2W market.  In-house R&D and technology capabilities with a spending of ₹385 crore in FY24.  Manufacturing at scale as the Ola Futurefactory had an installed capacity of one million units per year as of 31 March 2024.  The company's scalable platform-based design and development approach allows it to leverage common elements, such as its modular electric powertrain, power electronics module, electronics, and software, to develop and design new EV models.  A digitally driven and integrated sales and service experience model offers cost advantages.  Eligibility for EV-related government incentives, such as the Automobile PLI Scheme and the Cell PLI Scheme, leads to cost advantages.  Execution capabilities as its employee count increased significantly from 2,944 as of 31 March 2022 to 7,369 as of 31 March 2024, along with 959 employees engaged in R&D activities as of 31 March 2024.   Risks and threats   Limited operating history as it was incorporated in 2017 and delivered its first EV scooter in December 2021.  Has consistently incurred losses and negative cash flows from operating activities since inception.  Any reduction or elimination of government incentives might have a detrimental effect on the business.  Operates in a highly competitive and fast-evolving automotive market.  Consumers could have inadequate access to public chargers, which could affect demand for electric vehicles.  The lithium-ion cells used in EVs are subject to the risk of adverse publicity if they catch fire or vent smoke and flames.  The range of its electric vehicles on a single charge declines over time, which may negatively influence potential customers’ decisions.  Operates a capital-intensive business, and its subsidiaries, OET and OCT, had total outstanding borrowings of ₹2,389 crore as of 31 March 2024.            Ola Electric Mobility Limited IPO details  | Ola Electric Mobility Limited IPO date  According to the offer document filed by the company with the SEBI, the Ola Electric Mobility IPO’s opening date – in other words, the Ola Electric Mobility IPO launch date – will be 2nd August 2024. The Ola Electric Mobility IPO closing date is 6th August 2024. After this, investors will be updated about the allotment status on 7th August 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 8th August 2024. The Ola Electric Mobility IPO listing date is 9th August 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE  | Ola Electric Mobility Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Ola Electric Mobility IPO price band has been set between ₹72 and ₹76 per share. Interested investors can choose a price within this band to apply for the IPO.  The Ola Electric Mobility IPO listing price will be determined on 9th August 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Ola Electric Mobility Limited IPO Lot size  The Ola Electric Mobility IPO details have been declared. The Ola Electric Mobility IPO lot size, is set at 195 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Ola Electric Mobility IPO issue size is approx ₹6,145 crore.           How to pre-apply for the Ola Electric Mobility Limited IPO?  You can pre-apply for the Ola Electric Mobility Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Ola Electric Mobility Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Ola Electric Mobility Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Ola Electric Mobility Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Ola Electric Mobility Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Ola Electric Mobility Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Ola Electric Mobility Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Ola Electric Mobility Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Ola Electric Mobility Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Ola Electric Mobility Limited IPO  To apply for the Ola Electric Mobility Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Ola Electric Mobility Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Ola Electric Mobility Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.