Ola Electric is gearing up for a game-changing move in the financial landscape, set to file its Draft Red Herring Prospectus (DRHP) with SEBI by December 20, eyeing an ambitious ₹5800 Cr approx., through its upcoming IPO. The company, backed by SoftBank, envisions a valuation between (Rs 58,363 crore to Rs 66,701 crore) by early 2024, with funds allocated for expanding its EV business and establishing a lithium-ion cell manufacturing unit.
Ola Electric News: Key Highlights
- Ola Electric plans to file DRHP with SEBI by Dec 20, targeting ₹5800 Cr in IPO funds.
- Ambitious valuation goal of (Rs 58,363 crore to Rs 66,701 crore) by early 2024.
- Recent adjustments in sales targets and profitability timeline due to reduced government incentives.
- The transformation from a private to a public company in November, a crucial step for IPO readiness.
- Partnership with Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024, featuring a mix of primary and secondary share offerings.
Ola Electric’s IPO: Strategic Goals
The funds amassed from the IPO will be instrumental in expanding Ola Electric’s electric vehicle (EV) business and establishing a cutting-edge lithium-ion cell manufacturing unit.
Adjusted Targets and Strategic Shifts
However, recent reports suggest Ola Electric has adjusted its sales targets for 2023-2025, reducing them by over 50%, and postponed its profitability target by a year. This strategic shift is attributed to the impact of diminished government incentives, resulting in increased e-scooter prices.
Ola Electric, the prominent player in the Indian electric two-wheeler market, has revealed a nearly doubled net loss in the fiscal year 2023, amounting to Rs 1,472 crore. Simultaneously, the consolidated revenue experienced an impressive over six-fold increase from the previous year, reaching Rs 2,782 crore in FY23.
From Private to Public: Transformation Milestone
Ola Electric made headlines earlier in November when it transformed from a private limited company to a public company, a crucial step in preparation for its IPO. This transformation involved corporate restructuring and a change in the company’s name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited, a necessary process for companies aspiring to be listed on the stock exchange.
Ola IPO Planning and Partnerships
According to earlier reports by Moneycontrol, Ola Electric has enlisted Kotak Mahindra Capital and Goldman Sachs for its IPO in early 2024. The IPO is expected to include a combination of primary and secondary share offerings.
Funding for Growth and Innovation
In a funding round announcement, Ola Electric revealed securing Rs 3,200 crore from Temasek-led prominent investors and debt from the State Bank of India (SBI). These funds will be utilised to expand Ola’s EV business and establish India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
Ola Electric IPO: Portfolio Expansion and Market Commitment
Ola Electric, in a strategic move in February 2023, expanded its scooter portfolio to five products, showcasing its commitment to the growing electric vehicle market. As the company gears up for its IPO, all eyes are on its ambitious plans for growth and development in the evolving electric mobility landscape.
Conclusion
Investors eyeing the Indian market are presented with a compelling opportunity through Ola Electric’s upcoming IPO. With a strategic focus on electric mobility, significant funding, and a transformative shift to a public entity, Ola Electric’s growth aligns with the evolving dynamics of the Indian market, making it a noteworthy prospect for those seeking investment avenues in the country’s burgeoning electric vehicle sector.
Source: moneycontrol.com
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.