Ola Electric IPO Details: Launch Date, Share Price, Issue Size, GMP & Review

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Ola Electric Mobility Limited – About the Company

Ola Electric is one of the first of its kind of electric vehicles (EVs) in the two-wheeler segment maker is now involved in manufacturing the EVs and core EV components, including cells. Apart from producing two-wheeler EVs, it is also producing certain core EV components like making battery packs and motors at Ola Future factory, at its manufacturing facility.



The company has vertically integrated technologies and manufacturing capabilities to operate on three key scalable platforms. First, R&D and technology platform with in-house design and development across EV technologies and components. The second one is an adaptable manufacturing and supply chain platform, and the third one is a D2C omnichannel distribution platform that comprises 935 experience centres located across India of which 414 are service centres.

In August 2021, Ola Electric introduced its first EV model - the S1 Pro and now it has a product portfolio of five EV scooter models with different price ranges. And within nine months of the launch of its first EV scooter, Ola Electric has become the best-selling E2W player in India. As of June 2023, it has a 31% market share in electric two-wheelers and further aims to explore exporting EVs to specific international markets and become the leading player in EVs.

Its Ola Future factory manufacturing unit 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, and at this unit, the company is producing EV scooters using certain EV components manufactured in-house and other components procured from third parties, such as cells.

Apart from that, the company is also operating a BIC in Bengaluru, India that is mainly focused on developing the cell and battery technology and manufacturing processes for its forthcoming cell manufacturing at the Ola Gigafactory.

Ola Electric IPO Objectives

As per the filed draft red herring prospectus (DRHP) document, the company is looking to raise Rs 5500 crore through a fresh issue of shares. As per the latest financial reporting, Ola Electric has total borrowings or debt of Rs1,617 crore in FY24.

Hence, one of the main objectives of Ola Electric's IPO is to raise funds from proceeds to reduce its debts and repay loans owed by subsidiaries from banks. However, part of the issue will also be used for capex expenditure and various other purposes.

As per the offer document, out of the total fund raised by fresh issuing of shares through the IPO, Rs 1,600 crore will be used for research and development (R&D) investments and Rs1,226.4 crore for Ola Cell Technologies' Gigafactory project.

While Rs 800 crore will be to repay the debts of Ola Electric Technologies (OET) and Rs 350 crore will be used for the organic growth initiatives and meet the other fund requirements of the company like general corporate purposes.

Ola Electric Financial Performance

Ola Electric started its operations in 2021, and in FY21 company reported revenue of only Rs86.4 lakhs, but thanks to exceptional growth due to strong demand for its products in the market, the company achieved a revenue of Rs 2630.93 crore in FY23. In the first three months of FY24, the revenue of the company touched to Rs 1242.74 crore.

However, due to high operating costs, the company has been incurring operating losses since FY21. In full-year FY21 the EBIDTA was in negative of Rs 178.82 crore and further increased with higher sales and widened to Rs 1100.68 crore in FY23. In the first quarter of FY24, the EBIDTA was again negative Rs 182.04 crore but during the same period for the first time company reported an operating profit of Rs 38.87 crore showing improved operating margins.

And further because of additional expenses like depreciation and interest cost, the company has registered a net loss of Rs 1375.66 crore in FY23, that loss was much lesser at Rs 199.23 crore in FY21 due to lower sales in the same period. However, the loss of the first three months of FY24 is Rs 265.38 crore due to better operating margins.


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