Ola Electric, a leading indigenous electric two-wheeler manufacturer, is gearing up to launch an IPO aiming to raise around Rs 5,800 crore, planning to submit its Draft Red Herring Prospectus to SEBI by December 20. The company eyes a valuation surpassing $7 billion by early 2024, focusing on expanding its EV business and establishing a lithium-ion cell manufacturing facility through this IPO, as reported.
Since its sales commencement in December 2021, Ola Electric has already sold more than 353,000 units. However, the firm, steered by Bhavish Aggarwal, witnessed a sharp rise in net loss to Rs 1,472 crore in FY23 from Rs 784.1 crore in the previous fiscal year due to a substantial surge in expenses. EBITDA loss stood at Rs 1,318 crore, attributed to a spike in total expenses to Rs 3,383 crore compared to Rs 1,240 crore in FY22.
The company aims to achieve an EBITDA profitability of Rs 803 crore in FY25, after experiencing a significant 293% rise in losses to Rs 784 crore in FY22.
Key Points:
1. Ola Electric, a domestic electric two-wheeler manufacturer, plans to file its Draft Red Herring Prospectus (DRHP) with SEBI by December 20, aiming to raise approximately Rs 5,800 crore through an Initial Public Offering (IPO).
2. The company seeks a valuation exceeding $7 billion by early 2024 through the IPO, intending to fuel its EV business expansion and establish a lithium-ion cell manufacturing facility, as highlighted in media reports.
3. Since its sales inception in December 2021, Ola Electric has successfully sold over 353,000 units, indicating a significant market presence and consumer acceptance.
4. However, in FY23, Ola Electric experienced a notable increase in net loss, reaching Rs 1,472 crore, nearly doubling from Rs 784.1 crore in the previous fiscal year. This spike in losses correlated with a substantial surge in expenses, reflecting the company's financial challenges.
5. The company reported an EBITDA loss of Rs 1,318 crore in FY23, with total expenses escalating to Rs 3,383 crore, compared to Rs 1,240 crore in FY22. Ola Electric aims to achieve EBITDA profitability of Rs 803 crore by FY25, striving to address the consistent growth in losses, which surged by nearly 293% to Rs 784 crore in FY22.
(With Agency Inputs)
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