Ola Electric to file DRHP with SEBI next week
Ola Electric, founded by Bhavish Aggarwal, has registered strong revenue growth in FY23. The total revenue has increased by 510% in FY23 to ₹2,782 crore from ₹456 crore in FY22. This total revenue includes revenue from operations and other income.
Homegrown electric two-wheeler manufacturer Ola Electric is set to take the first step towards an Initial Public Offering (IPO) next week. Sources suggest that the company is preparing to file a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) before December 20, 2023.
The company aims to raise up to $700 million through its IPO and is looking to list at a valuation of over $7 billion by early 2024, according to industry sources.
The company, founded by Bhavish Aggarwal, began sales in December 2021 and has sold over 353,000 units to date. Ola Electric has registered strong revenue growth in FY23. The total revenue has increased by 510% in FY23 to ₹2,782 crore from ₹456 crore in FY22. This total revenue includes revenue from operations and other income.
The company has made steady progress during FY23. The EBITDA profit/loss for FY23 has improved from -157% in FY22 to -43% in FY23. However, the company’s net loss widened to ₹1,472 crore in FY23 due to an increase in expenses. The EBITDA loss came in at ₹1,318 crore and total expenses were ₹3,383 crore in FY23, compared to ₹1,240 crore in FY22.
Also Read: TVS introduces custom built bikes, aims to create 500 premium biking touchpoints by end of 2023
Sources indicate that Ola has been increasing its gross margin from -5.4% in FY22 to 7.63% in FY23. The company is projecting sales of 0.3 million in FY24 and 0.9 million by FY25. Ola sold 0.15 million electric vehicles (EVs) in FY23 and hopes to achieve EBITDA profitability of 6.6% by FY25.
According to a Reuters report, Ola Electric has reduced its sales forecast to 300,000 from 882,000 in FY24 and cut the FY24 revenue forecast from $1.5 billion to $591 million.
The company has five electric scooters in its portfolio - Ola Electric currently has the following electric scooters in its portfolio — S1 Pro, S1, S1 Air, S1 X and S1 Pro Gen 2 — and recently posted its highest-ever monthly sales of 30,000 units.
Ola Electric holds a 35% market share in the electric two-wheeler segment. The company is likely to use funds raised through the IPO to expand its electric vehicle sales and operation of its lithium-ion cell manufacturing plant.
(Edited by : Vivek Dubey)
First Published: Dec 11, 2023 5:19 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP's Hindi heartland dominance faces test in phase 3 polls
May 2, 2024 9:14 PM
Lok Sabha Election: Re-elections at a Ajmer booth after presiding officer misplaces register of voters
May 2, 2024 4:54 PM