OLA Electric IPO Review | Share Market Latest IPO Analysis

Summary

The video script discusses the IPO of Ola Electric, a company that has been making losses despite increasing revenues. Influencers on the internet are advising against investing in this IPO due to its high valuation and rapid expansion costs. However, retail subscription has already surpassed expectations on the first day, indicating a possible conflict between expert advice and public interest. The script also covers the company's vertical integration strategy, subsidy impacts, and competition in the electric vehicle market, urging viewers to make informed decisions by considering all aspects before investing.

Takeaways

• 🚀 Ola Electric's IPO has generated significant buzz, with influencers advising against investing due to concerns of potential loss.
• 📈 Despite warnings, retail subscription within the first day of the IPO has exceeded expectations, reaching 1.5 times the retail category.
• 🏢 Ola Electric was established in 2017 and is now seeking a valuation of around 6000-6500 crores, despite not yet being profitable.
• 📊 The company has shown increasing revenue from 373 crores in 2022 to over 5000 crores in 2024, but also increasing losses.
• 🔋 Losses are attributed to rapid expansion and investment in production capacity and facilities.
• 💡 The founder, Mr. Bhavish Aggarwal, has a significant personal investment in the company, which may influence perceptions of the company's value.
• 🛠️ Ola Electric aims for vertical integration, producing everything from tires to batteries in-house to increase profit margins.
• 🔄 The company has a growing network of experience centers and service centers, indicating a focus on customer reach and after-sales service.
• 🚗 There is a comparison with Tesla in the electric vehicle market, and competition is intensifying with new entrants and established players.
• 💰 Government subsidies have played a role in the growth of electric vehicles, but there is a challenge as subsidies are decreasing, affecting sales and pricing.
• 📉 Investors are cautioned about the high valuation and the potential for the market not to meet expectations, suggesting that exceptional returns are unlikely.

Q & A

What is the main topic of the video script discussing?

The main topic of the video script is discussing the IPO of Ola Electric and the various aspects related to it, including the company's performance, market response, and advice on whether or not to invest in the IPO.

What year did Ola Electric start its operations?

Ola Electric started its operations in 2017.

How has Ola Electric's revenue trend been from 2022 to 2024 according to the script?

Ola Electric's revenue has been increasing, with 373 crores in 2022, jumping to 2631 crores in 2023, and reaching 5100 crores in 2024.

What is the concern regarding the losses of Ola Electric mentioned in the script?

The concern is that despite increasing revenue, Ola Electric has been making significant losses, which have been growing from 784 crores in the first year to over 1580 crores in 2024.

What is the reason behind the continuous losses of Ola Electric as discussed in the script?

The losses are due to the company's rapid expansion of its facilities and production capacity, which requires substantial capital investment.

What is the role of subsidies in the electric vehicle market as discussed in the script?

Subsidies play a significant role in the electric vehicle market by making electric vehicles more affordable for consumers, thus boosting sales and adoption.

How does the script describe the competition in the electric vehicle market?

The script describes the competition in the electric vehicle market as increasing, with many new companies entering the segment and offering a variety of designs and performance options.

What is the significance of vertical integration for Ola Electric as per the script?

Vertical integration is significant for Ola Electric as it allows the company to manufacture everything from a tire to a battery in-house, which can potentially increase profit margins.

What is the 'Moo O' operating system mentioned in the script and why is it important?

The 'Moo O' operating system is a proprietary software developed by Ola Electric. It is important as it represents the company's move towards vertical integration and control over its technology ecosystem.

What are the dates for the Ola Electric IPO as mentioned in the script?

The Ola Electric IPO starts on the second of August and is open for subscription until the sixth of August.

What is the price range for the Ola Electric IPO as discussed in the script?

The price range for the Ola Electric IPO is between 72 and 76 per share.