The shares of this leading player in the electric vehicle (EV) market in India gained 71% in the last 3 days after its listing price on the stock market.
On Tuesday, At 12:45 a,m., Ola Electric Mobility shares were trading at ₹113 per share, up 3.52 percent from the previous close price on the exchange. The company has a market capitalization of ₹51,408 crores. Ola Electric shares were listed at a price of ₹76 per share on August 9th,2024.
About the company: Founded in 2017, Ola Electric Mobility Limited is an electric vehicle company that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
What Happened:
Ola Electric Mobility Ltd debuted on the stock exchange on August 9, 2024, raising approximately ₹6,145.56 crores. The company’s IPO was oversubscribed by 4.27 times, reflecting strong investor interest.
Ola Electric dominates the rapidly growing Indian electric two-wheeler (E2W) market, holding around 35% of total E2W registrations in Fiscal 2024.
Despite a negative EBITDA margin of -19.84% in FY24, compared to peers with margins ranging from 14% to 33%, Ola Electric has shown year-over-year improvement.
Additionally, Ola Electric plans to significantly ramp up its production capacity from 2 million to 10 million electric scooters annually and increase its battery output capacity to 100 gigawatt hours (GWh) per year. This aggressive expansion reflects the company’s anticipation of growing future demand.
The company has allocated the funds raised from the IPO towards key initiatives,including expanding cell manufacturing capacity and investing in research and development.
These strategic moves are seen as positive indicators of long-term growth and innovation, contributing to the strong buying pressure and positive sentiment surrounding Ola’s stock price post-listing.
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Additional Information:
The company has launched seven products and announced four new motorcycles (Adventure, Diamondhead, Cruiser, and Roadster). Their products include Ola S1 Pro,
Ola S1 Air, Ola S1 X, Ola S1 X+, and others. The company even plans to export its vehicles to select international markets in the future.
The company’s market share in the electric two-wheeler (E2W) segment surged to 34.80% in FY24, up from 21% in FY23 and 5.70% in FY22. As of March 31, 2024, Ola Electric operates 870 experience centers and 431 service centers in direct-to-consumer (D2C) distribution.
Financials: In its recent financial reports, Ola Electric demonstrated substantial revenue growth, rising from ₹2,631 crores in FY23 to ₹5,010 crores in FY24 a 90% increase. Despite this impressive growth, the company reported a net loss of ₹1,584 crores in FY24.
Written by Omkar Chitnis
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