Ola Electric IPO - Investment Rationale, Issue Details, Financials, Strengths, Risks And More: Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi's IPO Report.Ola Electric Mobility Ltd. will launch its initial public offering tomorrow and the offer closes for subscription of Aug. 06. A pure EV player in India has set the price band in the range of Rs 72-76 per share. The minimum order lot for bidding is 195..At the upper price band, the Rs 6,146 crore IPO comprises of fresh issue of 72.37 crore shares, worth Rs 5,500 crore and an offer-for-sale by existing shareholders of 8.49 crore shares, aggregating to Rs 645.56 crore..Object of fresh issue Capital expenditure to be incurred by the subsidiary, OCT for the Project. Repayment or pre-payment, in full or part, of the indebtedness incurred by the Subsidiary, OET. Investment into research and product development. Expenditure to be incurred for organic growth initiativesGeneral corporate purposes. .Valuation and outlook Ola Electric Mobility being the fast-growing segment in EV space. Going ahead, EVs are anticipated to drive substantial growth in the global automotive market. However, we believe that Ola has significant headroom to grow in coming years led by favourable market conditions, regulatory norms and the higher capacity utilization of Ola Futurefactory on yearly basis. Moreover, they commenced manufacturing the 4680-form factor cells at the Ola Gigafactory on March-24 which is expected allow better control over battery and EV quality, supply, and costs. Despite being a lossmaking entity company has gained market share of 34.8% in E2W segment. At the upper price band company is valuing at marketcap/sales of 6.6 times with a market cap of Rs 335,22 crore post issue of equity shares. Currently top global automobile entities are trading between 1-8 times as on marketcap/sales. Therefore, on the valuation front, we believe that the company is richly priced. Thus, we recommend a “Subscribe – long term” rating to the IPO with a higher risk appetite. .Click on the attachment to read the full IPO report:.Ola Electric IPO: To Subscribe Or Not To Subscribe.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ola Electric IPO - Investment Rationale, Issue Details, Financials, Strengths, Risks And More: Anand Rathi

The Rs 6,146 crore IPO will open tomorrow for subscription, with a fixed price band of Rs 72-76 per share.

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Ola Electric IPO - Investment Rationale, Issue Details, Financials, Strengths, Risks And More: Anand Rathi

The Rs 6,146 crore IPO will open tomorrow for subscription, with a fixed price band of Rs 72-76 per share.

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