IPO 2023: Ola Electric IPO to be the first auto company to list in 20 years in India

IPO 2023: Ola electric will be the first auto company to go public in 20 years in India. Passenger car major Maruti Suzuki's IPO hit the market in 2003. As per Times of India, with an expected size of about Rs 8,500 crore, the Ola Electric IPO will rank among top 15 offerings in India by size.

Ola Electric IPO

This will also be the first electric vehicle manufacturer to list on Indian bourses. As per Times of India, Ola Electric is expected to file the draft prospectus this month and the issue would be a combination of fresh equity and offers for sale by some of its existing investors.

Also Read: Ahead of IPO, Ola electric slashes sales target: Report

The company in October raised Rs 3,200 crore through a mix of equity and debt. The Times of India report also mentioned that a major part of this fund would be used in the setting up of EV manufacturing unit and battery unit at its Tamil Nadu gigafactory. This factory which aims at decarbonising the environment by manufacturing electric vehicle is expected to be operational by 2024.

Ola sales target cut

Ola Electric has slashed its sales goals for 2023-2025 by more than half and delayed its target of achieving profits by a year. This after, e-scooter prices went up as the government incentives were reduced.

The revenue target is also cut down to $591 million from the earlier goal of $1.55 billion. Before the cut in incentive, Ola which was a loss-making entity was expecting a profit $220 million in the ongoing 2023-24 fiscal year. However, as per the reversed target, the company is expected to record an operating loss of $92 million this year, and a profit of $111 million next year.

Ola will sell 900,000 units in 2024-25 and 2.3 million units in 2025-26, the new document showed. Those targets are 60% and 21% lower than earlier estimates when incentives were in place.