[TusharK]

According to a media report, Ola Electric is planning to launch an initial public offering (IPO) with the aim to raise between US$ 800 million to US$ 1 billion, with a valuation of US$ 10 billion.



Reports also state that Ola Electric has appointed Goldman Sachs, ICICI Securities, Axis Capital, Citi and Kotak Securities as lead managers for its IPO. The EV maker is also said to have appointed Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas as legal advisors.

The Ola Electric IPO is expected to open in the last quarter of the current fiscal. It could be a combination of fresh issues of shares and offer-of-sale by existing investors, accounting for around 10% of the share sale.

Ola Electric would be the first Indian EV maker to be listed. If the company is able to secure the US$ 10 billion valuation, it would make it the third most-valued 2-wheeler brand in India after Bajaj Auto and Eicher Motors.

Source: ET Auto

Link to Team-BHP News

[SmartCat]

Don't look, but they just raised money at $6 billion valuation.
https://www.team-bhp.com/forum/motor...ing-round.html (Ola Electric receives US$ 300 million in latest funding round)

Ola Electric promoters to last round private equity investors:

[fordday]

This is crazy. These companies and their valuations are always media- propaganda driven.

Let them earn some some profit, then I will buy their shares until then bye bye.

[MrMcqueen]

I am unable to understand the start-up valuations.

unicorns in general have very unrealistic valuations without considerations to the risks

We don't know whether Ola Electric is able to make money on unit of sales or not.

as any auto manufacturing unit have very high capex in initial days, we can assume this company will also be a big cash cows for some time.

On the investment note it seems Construction of Ola electric cell manufacturing facility is under full swing.

[BigB]

Most Unicorns are least concerned about profits and concentrate only on sales. This is because the valuations seem to be rotate around sales, rather than profits.

This video explains in plain words how do unicorn play games in valuation.

https://www.youtube.com/watch?v=RPImGpEoDMU

[JediKnight]

Originally Posted by SmartCat

Don't look, but they just raised money at $6 billion valuation.

This is the new startup Ponzi scheme. Fleece the next investor to pay the previous and then finally fleece the public with an IPO. No wonder there is huge uptake in AIF investing in private equity by HNIs.

When I was a youngster I scoffed at Karl Marx when he wrote that the rich build systems to suit them. Though not a fan of communism, I think there is some truth in what he said.

[Nilesh5417]

Originally Posted by BigB

Most Unicorns are least concerned about profits and concentrate only on sales. This is because the valuations seem to be rotate around sales, rather than profits.

This video explains in plain words how do unicorn play games in valuation.

https://www.Youtube.com/watch?v=RPImGpEoDMU

I somehow feel that sales are only a part of the valuation equation - the other parts with most weightage seem to be the amount of $ pumped in prior to IPO and the standing of the equity investors.
I.e. if someone like Softbank has pumped in 500mn already, you can bet that the IPO will get launched at ludicrous prices!!

[SoumenD]

Ola cabs is still not profitable right after more than a decade? It somehow feels startups these days are more about race to becoming ‘unicorn’ and then eventually exit. Profitability be damned.

Then there are shows like Shark Tank which make you celebrity. Ashneer Grover apparently is appearing on Roadies now. All his shenanigans till date make perfect sense now.

[volkman10]

Ola Electric's DRHP papers have been filed.

The company is looking to raise up to INR 5,500 crore through fresh issue of shares with an offer-for-sale (OFS) component of 95.2 million shares.

[DriverLess]

Additional risk factors mentioned in OLA IPO DRHP (https://www.moneycontrol.com/news/bu...-11949231.html)

* Price increase due to FAME reduction/elimination. Observed decline in orders in June 2023 by 58.14% as compared to May 2023 due to this.

* Risk of involvement of Bhavish Aggarwal's in other ventures such as ANI (OLA cabs) and Krutrim. Conflict of interests with his investments in Tork Motors (EV).

* Shortage of talent and attrition. Employee attrition rate was 42.06% and 47.48% in the seven-month period ended October 31, 2023

* Will continue to incur operating losses in the near term as they expand our product portfolio, build capacity and scale our operations.

* legal: Enforcement Directorate (ED), wherein its promoter was issued summons under Section 50 of the Prevention of Money Laundering Act.

* legal: As of December 22!, Ola Electric has around 189 pending legal proceedings.

** These cases are regarding non-delivery of vehicles after payment of full consideration;

** cancellation of the purchase order and loan application without the consent of the customer;

** delivery of vehicles that are defective or unable to meet the advertised standards;

** improper servicing of vehicles;

** and display of erroneous charge levels and break down of scooters.

[TusharK]

Ola Electric gets SEBI nod for Rs 5,500 crore IPO

Ola Electric has received the approval of the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), which will be the first by an EV startup in India.



According to reports, Ola Electric is eyeing a valuation of $6 billion. The Bangalore-based startup had filed a Draft Red Herring Prospectus (DRHP) with SEBI on December 22 and has proposed to raise up to Rs 5,500 crore through a fresh issue and an offer-for-sale (OFS) component of 95.2 million shares.

As per the draft IPO, Ola Electric’s former chief business officer Ankush Aggarwal will sell up to 47.4 million shares (1.3% stake) via the IPO. Other investors, including the SoftBank Vision Fund, will sell 23.8 million shares, along with Tiger Global (6.4 million), Alpha Wave Global (3.8 million), Matrix Partners India (3.7 million) and Temasek (1.3 million).

OIa Electric plans to use the proceeds from the IPO to expand the capacity of its cell manufacturing unit from 5 GWh to 6.4 GWh. A part of it will be used to repay loans, while the remaining will be invested in research and product development.

Source: ET

Link to Team-BHP News

[Samarth 619]

I will advise investors to be very careful and decide as per your own research, don't go by brand name, at least for the IPO. And the reasons are not against the company as such.

Its not 1980's, so you don't get shares on face value, Rs.10 or 100.
Book building means you get a share at the highest value it can apparently be fully subscribed at.

I've seen such a situation in PayTM IPO. Everyone highly anticipated it, and raised the demand to heights, such heights that it could never achieve again. The initial investors are still in loss if I'm not wrong (unless they got and sold it same month).

And as a general stock market advice, never ever buy a share (primary or secondary) of a company with sentimental/ political value, because they're inflated with non serious investors and ROI is gone for a toss, thus its always in a bubble.
Maruti Suzuki for example, many will just line up to buy due to sentimental reasons, with zero concern about investment.
Such people think, "I got a MS car since 20 years, let me get a share and be the owner of MS too."
This is again, a very very general advice, not always true.
But Ola looks to me like the next bubble with a short age.

[volkman10]

SEBI clears Ola Electric IPO:

[TusharK]

Ola Electric IPO to open for retail subscription on August 2

Ola Electric's much-awaited initial public offering (IPO) will open for retail subscription on August 2.



The Bangalore-based startup has proposed to raise up to Rs 5,500 crore through a fresh issue and an offer-for-sale (OFS) component of 95.2 million shares. The company plans to use the proceeds from the IPO to expand the capacity of its cell manufacturing unit from 5 GWh to 6.4 GWh. A part of it will be used to repay loans, while the remaining will be invested in research and product development.

Ola Electric's revenue from operations has more than doubled since FY2023. The company posted a revenue of Rs 5,009.8 crore in FY2024 compared to Rs 2,630.9 crore in the previous fiscal. It reported a loss of Rs 1,584.4 crore in FY2024.

Currently, Ola Electric has a market share of 46%. It offers a wide range of electric scooters. The EV maker also plans to introduce an electric motorcycle.

Source: Business Standard

Link to Team-BHP News

[bijims]

Finally, Ola is in for the IPO, It will be the first of an all-electric 2-wheeler player and should most likely be followed by Ather as well.