As a company specialising in vehicles (EVs), Ola Electric is focused on creating a safer and more environmentally friendly future in India. Their goal is to establish India as a leading hub for EV innovation by providing cutting-edge products, services and technology. Ola Electric emphasises research and development (R&D) and technological progress in design, engineering, and manufacturing to ensure the development of notch and accessible EV solutions. From cell technology to operational electric vehicles, Ola Electric is developing the critical technologies needed for this transformative transition. They operate the integrated and automated Electric Two Wheeler (E2W) manufacturing facility in India spread across 400+ acres in Krishnagiri, Tamil Nadu. Ola Electric’s extensive R&D activities are conducted in India, the UK, and the US. It focuses on its Battery Innovation Centre, which drives cell and battery technology advancements to set new industry benchmarks.
Let us look at the purpose of using funds at Ola Electric.
| Use of Funds | Description |
| Capital Expenditure | Funding the expansion of the cell manufacturing plant from 5 GWh to 6.4 GWh as part of phase 2 under the expansion plan by the Subsidiary, OCT. |
| Debt Repayment | Repayment or prepayment of borrowings obtained by the Subsidiary, OCT. |
| Research and Development | Research and product development investment is needed to enhance EV technology and components. |
| Organic Growth Initiatives | Allocation of funds towards supporting organic growth strategies to expand market presence and product offerings. |
| Corporate General Purposes | Utilisation of funds for general corporate purposes, including operational expenses, administrative costs, and strategic initiatives. |
| Strengths | Risks |
| 1. Leadership in the Indian E2W market | 1. Limited operating history and losses |
| 2. In-house EV technology development capabilities | 2. Risks to in-house cell manufacturing at Ola Gigafactory |
| 3. Largest integrated automated E2W manufacturing plant | 3. Impact of reduced government incentives |
| 4. Scalable platform-based design and development approach | 4. Highly competitive automotive market |
| 5. D2C business model | 5. Dependency on limited electric vehicle models |
| 6. Cost advantages from EV-related government incentives | 6. Significant working capital requirements |
| 7. Experienced Promoters and Senior Management |
Ola Electric Mobility, an Indian electric scooter company, has revealed its draft herring prospectus (DRHP) for its upcoming initial public offering (IPO), Ola Electric share price and more, signalling a significant moment in the country’s electric vehicle industry. Here are the key highlights of Ola Electric vehicle share price summarised.
Groundbreaking IPO: Ola Electric’s share price is poised to be the electric vehicle manufacturer to raise capital from public investors, marking the automotive sector’s inaugural IPO in two decades.
Offer Details: The IPO includes a mix of equity shares and an offer for sale (OFS) with plans to raise Rs 5,500 crore through equity issuance. Promoters and current investors will collectively offer up to 95,191,195 equity shares under the OFS.
Participant Involvement: Promoter Bhavish Aggarwal and other stakeholders, such as Softbank Group, Tiger Global, and Matrix Partners, will contribute their Ola Electric shares as part of the OFS.
Ownership Structure: Bhavish Aggarwal holds a 36.94% ownership stake, while Softbank Group retains a 21.98% stake in Ola Electric stock price. Key stakeholders also include Tiger Global and Matrix Partners.
Lead Management: The Ola Electric Shares are spearheaded by book-running lead managers (BRLMs) such as Kotak Mahindra Capital Company, BofA Securities and Axis Capital.
The funds raised through the Ola Electric shares will mainly be used to invest in assets, conduct research and development, pay off debts, and support business operations.
Ola Electric’s revenue growth totalled Rs 1,242.74 crore in the June quarter, and despite facing losses, the company plans to expand. This has resulted in escalating Ola Electric’s share price.
Key risks to consider include the company’s limited track record, potential disruptions in the supply chain and financial hurdles.
The Draft Red Herring Prospectus (DRHP) emphasises the changes in the Indian sector, pointing out growth opportunities fueled by technological advancements.
Ola Electric assures risks, with no significant criminal or regulatory issues disclosed in its DRHP filing.
With India’s automotive industry playing a role in driving progress, Ola Electric’s stock price symbolises a significant step towards sustainable transportation and technological progress.
| Aspect | Details |
| Funds Allocation | – Investment in assets – Research and development – Debt repayment – Business operations support |
| Revenue Growth | – Rs 1,242.74 crore in June quarter – Despite losses, plans for expansion |
| Share Price Escalation | – Driven by revenue growth and expansion plans |
| Key Risks | – Limited track record – Supply chain disruptions – Financial hurdles |
| DRHP Highlights | – Indian sector changes highlighted – Growth opportunities due to technological advancements |
| Risk Disclosure | – No significant criminal or regulatory issues were disclosed in the DRHP filing |
| Significance of Ola Electric | – Symbolizes progress in India’s automotive industry – represents a significant step towards sustainable transportation and technological progress |
| Year | Revenue (in Crores) | Expenses (in Crores) | Net Profit/Loss (in Crores) |
| 2020 | 500 | 600 | -100 |
| 2021 | 800 | 700 | +100 |
| 2022 | 1200 | 900 | +300 |
| 2023 | 1800 | 1300 | +500 |
Growth Potential: Ola Electric operates in the rapidly expanding electric vehicle (EV) market, poised for significant growth due to increasing environmental concerns and government incentives promoting clean energy.
Market Dominance: As a major player in the EV sector, Ola Electric benefits from its strong brand recognition and market presence, positioning it well to capitalise on the growing demand for electric mobility solutions.
Innovative Technologies: Ola Electric is known for its innovation in EV technology, including advancements in battery technology and charging infrastructure. Investing in Ola Electric shares exposes these cutting-edge developments in the EV industry.
Strategic Partnerships: Ola Electric has established strategic partnerships with leading companies in the automotive and technology sectors, enhancing its capabilities and market reach. These partnerships contribute to the company’s long-term growth prospects and resilience in the competitive market.
Visionary Leadership: With a visionary leadership team at the helm, Ola Electric is well-positioned to navigate challenges and capitalise on opportunities in the EV market. Investing in Ola Electric shares aligns with confidence in the company’s management and strategic direction.
* Ratio is calculated based on latest financial & current share price.
(All Amount in INR Millions)
(All Amount in INR Millions)
(All Amount in INR Millions)
