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Ola Electric is a Bengaluru based company that sells electric scooters in the Indian two-wheeler market. OLA Electric IPO is set to raise Rs 6,145.56 crores. The issue is a combination of fresh issue of 72.37 crore shares amounting to Rs 5,500 crores and offer for sale of 8.49 crore shares aggregating to Rs 645.56 crores.

• Bengaluru-based Ola Electric Mobility was founded in 2017.
• Company is a pure-play electric vehicle player that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motor s, and vehicle frames.
• Currently, the company has 7 2W (wheel) EV scooters. It has announced the launch of 4 no. 2W EV Bikes in Aug 23. The company plans to launch 3W EV, and 4W EV in future.
• Since August 2021, Ola Electric has launched seven products i.e. The Ola S1 Pro, its first EV model, was delivered in December 2021.This was followed by the Ola S1, Ola S1 Air, Ola S1 X and Ola S1 X+
• It comprises 870 experience centres and 431 service centres as of Mar’24.

• Ola has a market share of 34.80% as of FY24 in the 2W EV segment.
• Operates the largest integrated and automated E2W manufacturing plant in India.
• It is one of the three companies to have been selected to set up faculties to make Cells for EVs through the PLI route.
• From the Rs. 5,500 cr is Fresh Issue,
  • Rs. 1,600 cr for R&D
  • Rs. 1,228 cr capex for brownfield capacity expansion
  • Rs. 800 cr towards debt repayment
  • Rs. 350 cr organic growth for experience centres and charging network
• In past Ola has shut down some of the ventures which include its in-cab infotainment service, used vehicles business Ola Cars and its quick-commerce unit Ola Dash, Ola Café, Foodpanda, Ola Foods.
• THE IPO is coming at a price lower than earlier valuations.
• Earlier Vanguard has marked down the valuation of the Company. In 2017, Vanguard marked down Ola’s valuation by 40 % , indicating a valuation of about $3 billion from $5 billion in November 2015. Later Vanguard in 2023 end put a fair value of $1.88 billion which is 74% lower than the last valuation at which the company raised money.
• Ola Electric allotted 36.4 crore shares to anchor investors to mop up an amount of Rs 2,763 crore at a price of Rs 76 per share. Anchor book included names like Government Pension Fund Global, Nomura India Investment, Goldman Sachs (Singapore), and Fidelity along with SBI Mutual Fund (MF), HDFC MF, Nippon India MF, Sundaram MF, Bandhan MF, Bharti Axa Life Insurance etc.
• In this IPO Tekne Private Ventures offering shares in OFS would be making a loss of about 32%. Also another investor exiting, Alpine Opportunity, are part-exiting at 32% loss.
• Ola Electric reported a net loss of Rs 1,584.40 crore with a revenue of Rs 5,243.27 crore for FYE March 31, 2024. The loss increased even as revenues jumped. The company’s net loss stood at Rs 1,472.08 crore with a revenue of Rs 2,782.70 crore in 2022-23. 
• Cell PLI if successful and after commercial production starts, will get PLI incentives. However it to be noted that globally many advances has been made in cell manufacturing and success is not guaranteed.
• Employee attrition of 44% in FY24 and similar no.in FY23 shows internal pressures on the company. .
• I intend to apply in OLA Electric IPO only if there is very strong QIB response to IPO on Day 3 and if markets are able to limit downside in next2-3 days. The IPO looks to be in high risk category despite a good anchor response.
• GMP as reported on social media has been Rs. 9 (12%)
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.