According to market analysts, the current GMP of Ola Electric is Rs 9.60 (12.6%) in the unlisted market.
The IPO comprises a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of 8.4 crore shares. Under the OFS, founder Bhavish Aggarwal will offload 37.9 million shares in the IPO, the documents disclosed. The firm’s investors Alpha Wave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares.
Ahead of the issue opening, the company has raised just over Rs 2,700 crore from anchor investors including Nomura, HDFC Mutual Fund, SBI Mutual Fund and various others.
Ola Electric IPO review
Most analysts are bullish on the IPO as Ola is the market leader in the domestic electric two-wheeler industry, making it reap the benefits of any positive developments in the sector.
“Based on the narrative of EV proliferation in the country (current EV scooter penetration at 15%), we believe Ola to run the tide being the only pure play 2W EV. Therefore, keeping an eye and a cautious view on the demand and thereby the reduction in losses for Ola, we recommend Subscribing this IPO with a long-term perspective,” said analysts at LKP Securities.
“Ola has significant headroom to grow in coming years led by favourable market conditions, regulatory norms, and the higher capacity utilization of Ola Future Factory on yearly basis,” said Anand Rathi while recommending a subscription.
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Ola Electric IPO GMP
The current GMP of Ola Electric is Rs 9.60 (premium – 12.6%) in the unlisted market.
Ola Electric IPO price band
The company has priced the IPO in the range of Rs 72-76 per share and at the upper end, the company will be valued at market cap-to-sales of 6.6x with a market cap of just over Rs 33500 crore. Currently, top global automobile entities are trading between 1-8x on the same metric.
The company lowered its valuation in its last funding round in September led by Singapore’s investment firm Temasek, which valued it at over Rs 48,000 crore.
Other details
Ola Electric is a leading electric two-wheeler player in India with the highest revenues among all the EV two-wheeler manufacturers. It is also building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells.
The company manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. It delivered seven products and additionally announced four new products since the first product announcement in August 2021.
Ola Electric’s revenue from operations increased to Rs 5,009.8 crore in fiscal 2024, up from Rs 2,630.9 crore in fiscal 2023. This growth was primarily driven by increased sales of the Ola S1 and Ola S1 Pro scooters and the commencement of deliveries of the Ola S1 Air and Ola S1 X+ in fiscal 2024.
However, the company’s loss for the year increased to Rs 1,584.4 crore in fiscal 2024, up from a loss of Rs 1,472 crore in fiscal 2023.
Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets and BOB Capital Markets are the bankers to the issue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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