Ola Electric Mobility Ltd. (OEML), a prominent player in India’s electric vehicle (EV) sector, is making waves with its vertically integrated technology and manufacturing prowess. Specializing in the production of EVs and core components like battery packs and motors, Ola is poised to capitalize on the burgeoning electrification of mobility in India and beyond.
Since its inception in August 2021, Ola Electric has introduced seven products, including its flagship Ola S1 Pro, which debuted in December 2021. Following this, the company rolled out the Ola S1 in September 2022, the Ola S1 Air in August 2023, and various models of the Ola S1 X in 2024.
The company also announced an exciting lineup of motorcycles, set to hit the market in fiscal 2026. With these advancements, Ola has swiftly risen to the top of the electric two-wheeler (E2W) market in India, boasting the highest revenue among Indian E2W manufacturers in fiscal 2023.
Central to Ola Electric's success is its commitment to research and development. The company operates R&D facilities in India, the UK, and the US, focusing on innovative EV products and components. The Ola Futurefactory in Tamil Nadu (NS:TNNP) stands as the largest integrated and automated E2W manufacturing plant in India, underlining the company’s significant production capabilities. Additionally, Ola is developing an EV hub in Krishnagiri and Dharmapuri, including the upcoming Ola Gigafactory.
Ola’s direct-to-customer distribution network spans 870 experience centers and 431 service centers across India, forming the largest company-owned network of its kind. This extensive reach ensures that Ola can effectively engage with and support its growing customer base.
In a significant move, Ola Electric is launching its initial public offering (IPO) to raise INR 5,500 crore through fresh equity shares, along with an offer for sale of 84,941,997 equity shares worth INR 645.56 crore. The IPO, set for subscription from August 2 to August 6, 2024, is priced between INR 72 and INR 76 per share. This IPO will increase Ola's market capitalization to approximately INR 33,521.75 crore.
Financially, Ola has shown robust revenue growth but continues to incur losses. For the fiscal years 2022, 2023, and 2024, the company reported total incomes of INR 456.26 crore, INR 2,782.70 crore, and INR 5,243.27 crore, respectively, with corresponding net losses of INR 784.15 crore, INR 1,472.08 crore, and INR 1,584.40 crore.
Despite these losses, Ola's strategic initiatives and technological advancements position it well for long-term growth. The company aims to venture into E2W bikes, three-wheelers, cars, and even establish a global hub for EV batteries. While the journey to profitability will take time, Ola’s innovative approach and market leadership make it a promising long-term investment.
Ola Electric’s IPO presents an intriguing opportunity for investors looking to support a pioneering company in the rapidly evolving EV market. With its comprehensive manufacturing capabilities, extensive distribution network, and ambitious growth plans, Ola Electric is set to drive the future of electric mobility in India and beyond.
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X (formerly, Twitter) - Aayush Khanna