OLA Surging Ahead Pre-IPO: Nuvama Report OLA Electric is the new addition to the list of new IPOs from India and more recently, the Securities and Exchange Board of India (SEBI) gave its nod for the EV maker to go public.

By Paromita Gupta

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Bhavish Aggarwal, Founder and CEO, OLA.

OLA Electric is the new addition to the list of new IPOs from India and more recently, the Securities and Exchange Board of India (SEBI) gave its nod for the EV maker to go public.

Last December, OLA Electric submitted a draft red herring prospectus (DRHP) to SEBI in order to facilitate raising INR5500 Crores through a fresh equity offering. The company also hinted at selling 95.12 million equity shares worth INR 10 face value through an offer for sale (OFS).

The founder and CEO, Bhavish Aggarwal is reported to sell 47.3 million in sales.

As reported by Mint, Nuvama Institutional Equities, a Domestic Brokerage Firm met with Bhavish before the IPO and the reveal of pricing band details and key dates. Nuvama was also reported to have had a tour of the company's E-2W/cell production facility.

The brokerage firm said after the conversation with the OLA management that Electric Vehicle (EV) adoption in 2Ws is anticipated to soar over the medium term due to its better cost economics and greater model possibilities.

Further, OLA is said to have scheduled future motorcycle unveils after FY26 in categories such as Adventure, Diamond Head, Roadster, and Cruiser categories. OLA's management said the third-gen platform will be introduced the following year, from which they hope to achieve a 15% cost reduction. The firm also has a vision to build a 20 GWh cell manufacturing capacity for internal usage as well as export energy to other sectors.

Insights from Nuvama's visit further strengthened the EV maker's claim as one of the dominators in the category. According to Tracxn, OLA leads the segment in terms of funding, having received over USD 1 Billion in equity funding and boasts a market share of over 50%. Nuvema reports that the EV maker has the capacity to assemble over 1 million vehicles, vertically combining different component assemblies.

OLA also uses an 'omni-channel' D2C distribution network made up of more than 400 service centers and over 900 experience centers.

Nuvama's report said, "The speed at which OLA has set up its manufacturing facility is commendable. It has developed new products since August 2021, launched five products, and unveiled four motorcycle variants. We expect EV penetration to continue and grow from 5% in FY24 to 20% in FY30, implying a 30% CAGR."

According to the report, OLA has also established a 1.4GWh manufacturing capacity for 4680 cells (NMC chemistry). It revealed that the 21x70mm cell is most likely to be replaced by the 4680 cell, a 46x80mm cylindrical cell. OLA is said to be integrating 4680 cells currently and by the end of FY25, the cells are said to be modified for use in current models.

Paromita Gupta

Entrepreneur Staff

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com. 
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'Everyone Can Profit From It': What Is DeepSeek? China's 'Cheap' to Make AI Chatbot Climbs to the Top of Apple, Google U.S. App Stores

DeepSeek researchers claim it was developed for less than $6 million, a contrast to the $100 million it takes U.S. tech startups to create AI.

News and Trends

Bizloan Sets Ambitious Growth Plans After Securing INR 35 Cr in Series A Funding

The round was led by the Michael & Susan Dell Foundation and BLinC Invest, with Resurgent India serving as an advisor.

News and Trends

MapmyIndia Acquires 9.37% Stake in SimDaaS

MapmyIndia will invest INR 3 crore in a mix of equity shares and compulsorily convertible preference shares (CCPS) in SimDaaS. The acquisition is expected to bolster MapmyIndia's business portfolio.

News and Trends

Red.Health Acquires Majority Stake in TACT Academy to Strengthen Emergency Care Training

The strategic move aims to create a global center of excellence in allied healthcare, emphasising emergency medical services and pre-hospital care, while building a skilled workforce to address healthcare challenges in India and globally.

Business News

'I Love Doing Product Reviews': Bill Gates Stepped Down from Microsoft in 2020, But Admits He Still Spends 15% of His Time Working at the Company

In a new interview with the Wall Street Journal, Gates also said he is still close with Microsoft's CEO Satya Nadella.