Ola Electric is reportedly planning to submit a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) before December 20, 2023, news agencies said on Monday.


The two-wheeler manufacturer is ready to initiate its plans to go public with an Initial Public Offering and is preparing to submit the DRHP for the same, CNBC TV18 reported citing anonymous sources. The firm intends to use the IPO to raise upto $700 million to boost its sales and expand the operation of its lithium-ion cell manufacturing plant. The report noted that the company is hoping to list at a valuation of more than $7 billion by early 2024.


The company, founded by Bhavish Aggarwal, started in December 2021 and has so far sold more than 353,000 units. For the previous fiscal year (2022-23), the firm recorded strong revenue growth, where its total revenue increased to Rs 2,782 crore in FY23, from Rs 456 crore in the preceding fiscal year (2021-22), marking a rise of strong 510 per cent. This revenue included revenue from operations and other income. 


In the current financial year, the firm has managed to report steady progress. Its profit/loss for FY23 narrowed to -43 per cent, against -157 per cent reported in FY22. However, the firm reported a widening in its net loss to Rs 1,472 crore in FY23, owing to an increase in expenses. The EBITDA loss of the company stood at Rs 1,318 crore in the fiscal under review, while its total expenses were Rs 3,383 crore. 


The report cited anonymous sources and stated that Ola has been increasing its gross margin from -5.4 per cent in FY22 to 7.63 per cent in FY23. The company is estimating sales at 0.3 million in the current fiscal year (2023-24) and expects them to grow to 0.9 million in FY25. Notably, in FY23, Ola sold 0.15 million electric vehicles (EVs) and the firm is hoping to reach EBITDA profitability of 6.6 per cent by 2024-25 fiscal year. 


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