Ola Electric converts to public limited entity ahead of IPO

Ola Electric, the electric vehicle manufacturing arm of mobility company Ola, has converted itself from a private company to a publicly listed entity in preparation for a public listing. The company, incorporated in 2017, has also changed its name to Ola Electric Mobility Limited from Ola Electric Mobility Private Limited, according to regulatory filings. 

The electric two-wheeler manufacturer has been working towards a public listing by the end of 2023, according to previous reports. It claims to hold nearly 35% market share of electric two-wheelers in India and operates the largest two-wheeler factory in Krishnagiri in Tamil Nadu.

Ola Electric also started work on its 5 GWh capacity lithium-cell manufacturing plant earlier this year. 

Also Read

Ola and Ola Electric likely to go public by next year: Ola's Bhavish Aggarwal

The company raised Rs 3,200 crore in a mix of equity and debt round of funding led by Temasek and State Bank of India in October to back the expansion of its ‘Gigafactory.’ Ola’s Founder and CEO Bhavish Aggarwal had previously mentioned that the company was evaluating setting up a four-wheeler factory as well to make its manufacturing facility a one-stop-shop for all Ola Electric components. 

Valued at $5.4 billion post-money as of September 2023, Ola Electric reported a consolidated loss of Rs 784.15 crore for FY22, even as its consolidated income jumped by 4.2X year-on-year to Rs 456.26 crore. The chief contributor to revenue uptick was the sale of its e-scooters, with nearly 1.5 lakh scooters sold in FY22. The company is yet to file its earnings for FY23. 

According to market research and data platform Tracxn, Aggarwal is the majority shareholder in Ola Electric with nearly 36.6% shares in the company, followed by SoftBank at 23.6% and Tiger Global at 6.29%. 

In the two-wheeler segment, Ola Electric competes with Ather Energy which has the second lead in market share. Owing to the cuts in FAME II subsidy by the government, electric scooter makers in India have been compelled to increase prices.