Ola Electric Mobilty IPO Review

Ola Electric Mobility is an EV Company building towards a brighter, safer and greener future. They are building towards making India the world's EV hub by creating an ecosystem with products, services and technology which will define the next frontier of innovation.

Bhavish Aggarwal is the Founder, Chairman and Managing Director and the Promoter of the Company.

Financially, Ola revenue jumped from ₹4,562.60 Millions in FY22 to ₹27,826.97 Millions in FY23 and currently jumped to ₹52,432.70 Millions in FY24. But, EBITDA declined from ₹-7,175.52 Millions in FY22 to ₹-11,970.98 Millions in FY23 and currently at ₹-10,401.91 Millions in FY24. The PAT is declining from ₹-7,841.50 Millions in FY22 to ₹-14,720.79 Millions in FY23 and currently at ₹-15,844.00 Millions in FY24. This does not indicate a steady financial performance.

For the Ola IPO, the company is issuing shares at a pre-issue EPS of ₹-4.35 and a post-issue EPS of ₹-3.59. The pre-issue P/E ratio is -17.47x, while the post-issue P/E ratio is -21.16x against the industry P/E ratio of 41.37x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Ola indicates potential listing gains of 10% to 15%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid the Ola Electric Mobility Limited IPO for Listing gain or long term investment purposes.