Ola Electric races to file DRHP in two weeks | Mint
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Business News/ Companies / News/  Ola Electric races to file DRHP in two weeks
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Ola Electric races to file DRHP in two weeks

The company is also pressing ahead with an aggressive retail strategy, including launching products at a discount and cutting prices of current products, trying to consolidate its market position ahead of its listing

Bhavish Aggarwal, chief executive officer and co-founder of ANI Technologies Pvt., Ltd.Premium
Bhavish Aggarwal, chief executive officer and co-founder of ANI Technologies Pvt., Ltd.

New Delhi: Bhavish Aggarwal-led Ola Electric aims to file draft share sale papers in the next two weeks, two people aware of the matter said, ahead of the electric two-wheeler maker’s plans to go public early next year.

The company is also pressing ahead with an aggressive retail strategy, including launching products at a discount and cutting prices of current products, trying to consolidate its market position ahead of its listing.

According to the people cited above, the company wants to file its draft red herring prospectus (DRHP) before 20 December, before bankers and financial market participants break for year-end holidays. This deadline, one of the two people said, was critical for the initial public offering (IPO) to happen before next year’s general elections.

Ola declined to offer a comment on Mint’s queries.

The Bengaluru-based electric vehicle maker was last valued at $5.4-5.5 billion in October when it raised $384.43 million, including about $240 million in debt, from Temasek and the State Bank of India. However, it is expected to seek a valuation of nearly $8-10 billion when it hits the public markets to raise about $700 million.

Ola Electric has been the market leader in India’s electric two-wheeler market for the past 12 months, even as competition from TVS Motor Company, Bajaj Auto and Hero MotoCorp is now intensifying.

In November, data from vehicle registration dashboard Vahan showed Ola Electric led the pack with 29,764 units registered—a substantial 32.6% market share. TVS Motor followed with 20.8%, trailed by Bajaj Auto (12.8%), Ather Energy (10.1%), and Greaves Electric (formerly Ampere, at 4.8%).

At the same time, Ola Electric, which sold 150,000 e-scooters in FY23, has cut down its sales estimates from 2.5-5 million units in FY25 and beyond, to 900,000 units in FY25 and 300,000 units in FY24, company papers with Ola’s FY25 business projects showed. Mint saw a copy of the financial highlights from its projected FY25 business model. The papers also highlight that the company expects to improve its Ebitda margins from negative 157% in FY22, and negative 43% in FY23 to (positive) 6.6% in FY26.

To hold on to its lead in e-scooters, the company is rolling out products at steep discounts to lure in new, price-sensitive buyers. Its most affordable product, the S1 X+, is now available with a flat 20,000 discount, bringing down its ex-showroom cost to 89,999 and making it one of the most affordable e-scooters in the market.

However, incumbents such as Bajaj Auto and Hero MotoCorp are steadily gaining market share and asserting their presence in the segment, scaling up both production and distribution for their products, as well as launching new, revamped products.

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ABOUT THE AUTHOR
Alisha Sachdev
Alisha Sachdev is an assistant editor with Mint based in Delhi. She reports on the auto and mobility sector, with a special focus on emerging clean mobility technologies. She also focusses on developing multimedia properties for Mint and currently hosts the 'In A Minute' series and the Mint Primer podcast. Previously, she has worked with CNBC-TV18 and NDTV.
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Published: 06 Dec 2023, 10:50 PM IST
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