Ola Electric Ltd, a prominent Indian electric two-wheeler manufacturer based in Bengaluru, has received approval from SEBI for its upcoming initial public offering (IPO). The company aims to raise up to ₹5,500 crore through a combination of fresh equity and an offer for sale (OFS).
Ahead of announcing the IPO’s pricing band and dates, Ola’s CEO, Bhavish Aggarwal, recently met with analysts from Nuvama Institutional Equities. The discussions covered insights into Ola’s production facilities and future plans.
Key Highlights:
- Rising Demand in Electric Vehicles (EVs): Analysts foresee significant growth in the adoption of electric two-wheelers due to their cost advantages and expanding model ranges.
- Product Expansion: Ola plans to introduce new motorcycle models under categories like Adventure, Diamond Head, Roadster, and Cruiser starting from FY26. They also anticipate a 15% reduction in costs with the introduction of a third-generation platform in the following year.
- Cell Manufacturing Capacity: Ola aims to establish a robust 20 GWh cell manufacturing capacity, catering to both internal needs and potential exports to automotive and industrial sectors.
Nuvama’s visit underscored Ola Electric’s leadership in the electric two-wheeler market in India, capturing nearly 50% market share as of Q1FY25. They highlighted Ola’s agile manufacturing capabilities and its extensive network of service and experience centres.
Moreover, Ola is gearing up to enhance its cell manufacturing capabilities with advanced 4680 cells (NMC chemistry), expecting favorable financial returns and sustainable margins.
Ola Electric’s IPO is anticipated to bring significant attention from investors eager to participate in India’s burgeoning EV sector.
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