The India-based electric vehicle maker Ola Electric is already gearing up to rock stock markets. Essentially, the IPO is planned to open for the general public for subscription on the 2nd August 2024. Here are the key details you need to know:
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IPO Price Band:
Ola Electric aims to sell the share at the price range of Rs 72 to Rs 761. This price range depicts the offer price at which investors are offered an opportunity in the IPO.
Fundraising Target:
Of this, the firm expects to increase aggregation up to Rs 5,500 crore through new shares issuances and the OFS part.
The new models shall be incorporated into the production of electric vehicle cells and auxiliaries whereby the company will increase its cell production from the current 5-GWh to 6-GWh. 4 GWh.
Further, a part of it will be utilized for paying off the existing liabilities, out of which remaining amount will be invested on research and development of new products.
Financial Snapshot:
To understand how Ola Electric is placed in terms of its top line, let’s look at the revenue from operation numbers: It has reported a total income of Rs 5,009 in FY2024 after delivering several services and products. 8 crore and more than double of previous fiscal year of Rs 2,630 crore. 9 crore.
But EH also reported Rs 1,584 as a loss in the same year, so it means the loss does not stay away from it either. 4 crore in FY2024.
Ola Electric IPO: Key Points
Ola Electric is set to launch its Initial Public Offering (IPO) on August 2, 2024. The price band for the IPO is Rs 72-76 per share.
Key details about the IPO:
- Price band: Rs 72-76 per share
- Open for subscription: August 2-6, 2024
- Issue size: Rs 6,145.96 crore
- Fresh issue: Rs 5,500 crore
- Offer for sale (OFS): Rs 645.96 crore
What to consider:
Market Share and Product Range:
Presently, it has a monopoly of 46% in the electric two-wheeler space through its brand Ola Electric.
The company deals in an array of electric scooters; it also intends to launch an electric motorcycle soon.
Investor Interest:
The IPO has received a lot of attention, mainly because the demand for green transportation is increasing.
recently, the electric vehicle arm of SoftBank backed Ola Electric’s valuation is expected to lie in the range of $4. 2 billion to $4. 4 billion2.
Closing Thoughts: Ola Electric’s IPO could be said to be a turning point in the Indian EV market. It means that the future of urban transportation may be closely related to the success of such an offering as the world goes green. Regardless of whether you are an investor or just an interested observer hoping to see the development of electric vehicles and the case of Ola Electric over the next few years, witness the exciting journey the world is going through as it tries to build a greener tomorrow.
Always note that investing in IPOs is associated with risks; hence you should seek the services of financial advisors before you invest your money in IPOs.
