Ola Stock Discount Price

The highly anticipated Ola Electric IPO of 2024 was listed on both NSE and BSE on August 9, 2024. Founded in 2017, Ola Electric Mobility Limited is a leading electric vehicle manufacturer, producing not only EVs but also essential components like battery packs, motors, and vehicle frames at its Ola Future Factory in Krishnagiri, Tamil Nadu. The company launched its IPO with a base price of ₹76, receiving strong investor interest. The IPO was subscribed 4x by retail investors and 2.4x by institutional investors. On its debut, the stock listed at ₹76 and closed at ₹91 on the same day. By August 20, 2024, the share price surged to ₹157.40, driven by significant trading volume, can be said OLA stock at discount price now.

Since August 20, 2024, Ola Electric’s stock has taken a downturn, steadily declining to ₹81.76 as of October 23, 2024. Market Barrister presents key insights drawn from the company’s Draft Red Herring Prospectus (DRHP), highlighting critical business risks that investors should be aware of. These risks, as outlined by the company.

OLA Electric Draft Red Herring Prospectus Statements

Important factors that could cause actual results to differ materially from our expectations some of them are mentioned here :

1. We have incurred losses and negative cash flows from operations since inception
2. We have a limited operating history and there is no assurance we will be cost effective and profitable
3. Supply constraints, increased price and quality issues in the supply of raw materials used in cell manufacturing can adversely affect cell manufacturing quality of cells we produce.
4. Defects in our EVs, or their failure to perform as per industry standards or meet the performance levels advertised could adversely impact our brand and reputation and result in product recalls or legal actions against us
5. If our vehicles become ineligible for the EMPS 2024 subsidy we may become less competitive due to higher product pricing (without the subsidies), potentially impacting our business and financial performance.
6. If we are unable to claim government incentives under the PLI Schemes or the PLI Schemes are discontinued, we may become less competitive due to higher product pricing (without the subsidies), potentially impacting our business, profitability and financial performance.
7. The lack of interoperability of our and other EV players’ charging infrastructures may deter potential customers from purchasing our EVs
8. An investment in our Equity Shares involves a high degree of risk. You should carefully consider all the information in this Red Herring Prospectus, including the risks and uncertainties described below before making an investment in our Equity Shares.
9. The network of repair and servicing centres for EVs is not as developed as compared to ICE vehicles which may deter customers from purchasing EVs. for more to read on DRHP 

EV Manufacturing Automated Infrastructure

Ola Electric assemble EVs and certain core EV components, such as battery packs, motors and vehicle frames, at the Ola Futurefactory, and source cells, plastic parts, electronic child parts and metal parts from our suppliers. Our manufacturing activities at the Ola Futurefactory include.

• Robotic welding of the steel structure frame of our EV scooters
• Robotic application of paint onto our metal and plastic components
• Assembly of battery packs
• Manufacturing of electric motors; and
• Assembly and quality testing of the completed EVs

OLA Electric Strength and Vision

• Pure EV player with a leadership position in the fast-growing Indian E2W market
• Founder led company supported by a highly experienced and professional leadership team
• In-house R&D and technology capabilities
• Build “India” centric EV products with an “India first” strategy
• Continue to invest in R&D to advance our technological capabilities and optimize costs
• Building an EV hub with vertically integrated manufacturing and supply chain to improve cost efficiency
• Develop our cell technology and strengthen our in-house manufacturing capabilities
• Expand the product portfolio to drive market penetration

Ola Electric EV Segment

EV scooters

• Ola S1 Pro: driving range of up to 195 km, top speed of 120 km per hour , smart technologies on a 7-inch touchscreen
• Ola S1 Air:  driving range of 151 km with a 6 kW peak motor power ,smart technologies on a 7-inch touchscreen.
• Ola S1 X+: driving range of 151 km , comes in seven different colours. This model also includes smart connectivity 5-inch display
• Ola S1 X (2 kWh), Ola S1 X (3 kWh) and Ola S1 X (4 kWh): Our mass-market EV scooters that feature a driving range of up to
  190 km and a 3.5-inch segmented display ,available in three battery capacity configurations: 2 kWh, 3 kWh and 4 kWh

EV Motorcycles

• On August 15, 2023, we announced a line-up of E2W motorcycles, comprising the Cruiser, Adventure, the Roadster and our
  flagship motorcycle, the Diamondhead. We expect to begin delivery of the motorcycles in the first half of Fiscal 2026.

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After Sales Service

Our customers have access to our service network spanning 22 states across India, comprising 431 service centres (of which 429 service centres are located within some of our experience centres) as at March 31, 2024. Customers can book a service request appointment online. The service centres can be located using a pin code mapping-based network design. Customers can communicate with our service centres and track the status of their EV servicing order through our Ola Electric Companion app.

Customer concerns and complaints

Our customers can contact us regarding any questions, issues or complaints they may have through various customer support channels, including email, phone calls (interactive voice response system) and the chatbot on our Ola Electric Companion app. We typically categorize customer concerns as either (i) sales or fulfilment related concerns or (ii) service related concerns.

OLA Other  Business Future

We are a pure EV player seeking to contribute to a brighter, greener and safer future for India and globally. We believe that India is at the heart of the world’s transition to sustainable mobility.

Ola Electric IPO Conclusion

While investors eagerly awaited the Ola Electric IPO, set for launch in August 2024, many were able to generate significant returns. However, the company’s poor performance, particularly in its “After Sales Service,” led to a sharp decline in its stock price from ₹157 to ₹81. Chairman and Managing Director Bhavish Aggarwal faced public backlash due to the inadequate service, with some customers waiting months for their vehicles to be repaired. The frustration surrounding these delays significantly tarnished the company’s reputation, overshadowing its initial financial success.

Company has many risks in their  business as mentioned in DRHP as well as the future prospectus are emerging , company has setup the well maintained manufacturing automated facility in Tamil Nadu,Company is also going to launch the Motorcycle first model in year 2025.

Ola Electric Poor Vehicle Service 

The notice was triggered by nearly 10,000 consumer complaints lodged against Ola Electric between September 1, 2023, and August 30, 2024. The company was given 15 days to respond to the notice with a detailed explanation, backed by supporting documents. Ola Electric responded to the notice and provided the requested information and clarifications. 

Central Consumer Protection Authority (CCPA)

OLA Electric discount Price @81 Near to IPO price.

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Ola Stock Discount Price

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Disclaimer

Disclaimer: The information provided in this stock review is for educational and informational purposes only and should not be construed as financial advice. The opinions expressed are solely those of the author and do not constitute recommendations for any specific investment. Stock market investments carry inherent risks, and it is important to conduct your own research or consult a qualified financial advisor before making any decisions. Market Barrister and its contributors are not responsible for any financial losses incurred from investment decisions based on this content.