Ola Electric IPO: Check Anil Singhvi's view before subscribing to the issue

Ola Electric IPO Subscription Status, Ola Electric IPO Review By Anil Singhvi: The company's IPO is a combination of a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares worth Rs 645.56 crore, at the upper end of the price band, by promoters and investors. This takes the total issue size to Rs 6,145.56 crore.

Ola Electric IPO Subscription Status, Ola Electric IPO Review By Anil Singhvi: According to Zee Business Managing Editor Anil Singhvi, one should avoid the Ola Electric IPO. Singhvi said that those who want to buy should wait for the listing. 

Ola Electric IPO Subscription Status, Ola Electric IPO Review By Anil Singhvi: Singhvi said that one should buy after listing only once management shares the profitability plans. 

Ola Electric IPO Subscription Status, Ola Electric IPO Review By Anil Singhvi: Singhvi said that only risk-taking investors should subscribe to the IPO.

Ola Electric IPO Subscription Status, Ola Electric IPO Review By Anil Singhvi: Even after listing, one can invest with strict stop loss of IPO listing price.

- Strong leadership with a 38 per cent market share in Electric two wheelers

- Presents in both premium and mass segments

- Strong growth potential in this segment

- Strong revenue growth on a low base 

- Low advertising expenses 

- Good names in pre-IPO investors and anchor book

- Very weak financials 

- Loss-making company for the last 3 years

- At the EBITDA level and net level also, the loss has been increasing for the last 3 years

- Negative cash flow for the last 3 years is also a concern

- Both major subsidiaries also loss-making

- Huge debt of Approx 1590 Crore. The company will repay around 800 Cr from IPO Money 

- But intends to increase debt further for future CAPEX 

- Very low-capacity utilization at 49 per cent only

- If Govt. doesn't launch FAME III or extend EMPS beyond Sept 2024, it will impact sales 

- Disbursements of both PLI schemes have not started yet

- 37 per cent of raw materials imported from China

- Company plans to enter in electric 4 wheelers not clear

- Most important: Peers have a strong distribution network

Ola Electric IPO Subscription Status:  Ola Electric Mobility's shares are priced at Rs 72-76 per share, with investors able to bid for a minimum of 195 equity shares per lot and multiples thereof.

Ola Electric IPO Subscription Status: According to its prospectus, Ola Electric Mobility Ltd (OEML) plans to utilise Rs 1,227.6 crore out of the proceeds of its Rs 5,500-crore public issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh.

Ola Electric IPO Subscription Status: On Thursday, the company mobilised Rs 2,763 crore from anchor investors, including SBI Mutual Fund (MF), HDFC MF, Nippon India MF, Bharti Axa Life Insurance Company, Kotak Mahindra Life Insurance Company, Nomura India Investment Fund, Goldman Sachs (Singapore) Pte Ltd and Fidelity.

Ola Electric IPO Subscription Status: The issue, open for subscription from August 2 to August 6, received bids for 16.31 crore shares against 46.51 crore shares on offer. This translates into a subscription of 35 per cent, according to the data available with the National Stock Exchange (NSE) till 5 pm.