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Ola Electric’s 2W market share declines to 24.5% in November

EntrackrEntrackr · 7m ago
Ola Electric’s 2W market share declines to 24.5% in November
Medial

India's electric two-wheeler market recorded a 29% year-on-year growth in November, with total sales exceeding 118,000 units. However, on a month-on-month basis, the segment registered a nearly 15% decline compared to October, according to Vahan data. Ola Electric retained its position as the market leader with 29,191 units sold, which accounted for 24.54% of the EV two-wheeler market. The Bhavish Aggarwal-led company’s market share has seen fluctuations over the past six months. In October, its market share rose to 30% from 27% in September. However, this remains lower than its earlier shares, which were 32% in August, 39% in July, and a peak of 49% in June. TVS Motor and Bajaj Auto remained in close competition in November with sales of 28,200 and 27,400 units, respectively. The two companies also closed the gap with Ola Electric, capturing 23% and 22% of the market share, respectively. Ola Electric’s arch rival Ather Energy secured the fourth position with 15,800 units, while Hero MotoCorp's electric division recorded 3,300 units. Ather, which is also on the verge of listing on the stock exchange, controls 11% share in EV two wheelers space. Similar to its performance in the EV two-wheeler market, Ola Electric’s share price has also seen fluctuations in recent months. In November, its shares were trading at Rs 72.72, nearly 54% lower than their peak of Rs 157.53 in mid-August. However, last week, the stock surged by nearly 30% following the announcement of a new scooter range. This new range, designed primarily for commercial use in commerce and deliveries, is expected to boost the company’s sales in the coming months. In Q2, Ola Electric recorded a 26% decline in its operating revenue to Rs 1,214 crore when compared to Rs 1,644 crore in Q1 FY25. However, the firm registered 39% year-on-year increase in revenue from Rs 873 crore in Q2 FY24. The company posted a net loss of Rs 495 crore during the September quarter.

Ola Electric’s Secretary and Compliance Officer Pramendra Tomar resigns

YourStoryYourStory · 9m ago
Ola Electric’s Secretary and Compliance Officer Pramendra Tomar resigns
Medial

- Pramendra Tomar, secretary and compliance officer of Ola Electric, has resigned citing personal reasons and commitments. - The resignation is effective from October 1, according to a BSE filing. - Ola Electric is in the process of appointing a new candidate for the position of company secretary. - Tomar joined Ola Electric in 2022 and has considerable experience as a corporate lawyer and in company secretarial positions. - Ola Electric's shares have been struggling at the stock exchanges, with the price dropping below Rs 100 on Monday but regaining some ground on Tuesday. - The company reported a second straight month of sales drop in September, while competitors such as Ather Energy, TVS Motor, and Bajaj Auto saw sales numbers rise. - Ola Electric has been facing numerous complaints about its vehicles, and it has created a new service team to address these issues. - In September, Ola Electric introduced the 'Network Partner Program' to expand its sales and service networks across India and onboard 10,000 partners by 2025. - Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric (Disclaimer).

Decoding Ola Electric’s RHP fine print and FY24 numbers

EntrackrEntrackr · 11m ago
Decoding Ola Electric’s RHP fine print and FY24 numbers
Medial

Electric mobility company Ola Electric received approval from SEBI for its IPO and filed the red herring prospectus (RHP) on July 26. The company aims to raise Rs 6,146 crore ($740 million) which includes a fresh issue of Rs 5,500 crore ($662.7 million) and an offer for sale of up to 84,941,997 shares amounting to Rs 646 crore ($77.8 million) considering upper limit (Rs 76) of the price band. The company has set a price of Rs 72 to 76 per share. Ola Electric’s IPO will be open on August 2 for retail investors and their anchor book for its initial public offering (IPO) will open on August 1, 2024. The closing date of the IPO is August 6, 2024. It has appointed Kotak, BOFA Securities, Axis Capital, SBI Capital, CITI, Golaman Sachs, ICICI and BOB Capital as their lead managers. Entrackr has reviewed Ola Electric’s DRHP to decode its IPO blueprint. Ola Electric’s current captable According to the revised DRHP, Bhavish Aggarwal is the largest stakeholder in Ola Electric with 36.94% followed by SoftBank which holds 21.98%. Tiger Global commands 6.03% while Alpha Wave and Matrix Partners (now Z47) hold 3.49% and 3.43%, respectively. At the same time, Ola Electric’s employee stock options (ESOPs) pool stood at 7.67% of the total share capital. Who is selling in the IPO? Apart from Hyundai Motor and ANI Technologies (Ola Cabs), every major stakeholder is participating in Ola Electric’s offer for sale. During the sale of 84.9 million shares, Aggarwal is offloading 37.91 million shares amounting to Rs 288.2 crore at Rs 76 per share (upper limit of the price band), representing 2.78% of his total shareholding in Ola Electric. SoftBank will dilute its stake by 2.68% with 1.48x returns, and Tiger Global will sell 1.99% of its holding marking 6.5x gains. Alpha Wave and Temasek will sell 2.68% and 0.16% of their holdings with 1.22x and 1.01x returns, respectively. As an early backer of Ola Electric, Matrix Partners first invested in 2018, allowing them to benefit from a lower average cost of acquisition at Rs 8.22 per share. In contrast, Tiger Global’s average cost of acquisition was Rs 11.70 per share, and SoftBank invested at Rs 51.37 per share. Importantly, based on the price band of Rs 72-76 that will be available to the public, the investors above will realize specific returns from Ola Electric. Where will the IPO proceeds be utilized? According to the DRHP, out of the Rs 5,500 crore in fresh funds, Rs 1,227.6 crore will be allocated to capital expenditure, Rs 800 crore to debt payment, and Rs 1,600 crore for research and development. Ola Electric will also invest Rs 350 crore in organic growth initiatives, with the remaining amount will be used for general corporate purposes. Financial standing as of FY24 Ola Electric has shown strong growth over the past two fiscal years, with revenue increasing 13.4 times from Rs 373 crore in FY22 to Rs 5,010 crore in FY24, solely driven by sales of electric scooters. The hyper-growth has come at an efficient cost as its losses rose only 7.6% to Rs 1,584 crore in the last fiscal year (FY24) from Rs 1,472 crore in FY23. Where did Ola Electric spend the most during FY24? The SoftBank-backed firm allocated approximately 70% of its expenses to the cost of materials. Among these costs, cells comprised 32.7%, and power electronics accounted for 14.79%. Motors and other components collectively made up the remaining expense. Notably, out of the total cost of materials, Ola Electric imported 36.86% alone from China ( Rs 1,618 crore) in the form of lithium-ion cells, magnets, amplifiers, and electronic integrated circuits. Revenue breakdown by scooter model and units sold Ola Electric offers its scooter in five variants: Ola S1 Pro (Gen1), Ola S1 Pro (Gen2), Ola S1, Ola S1 Air, and Ola S1X. The company sold 3,29,618 scooters in FY24 which is more than 2X as compared to FY23. Ola S1 pro (Gen1 and Gen2) cumulatively generated 59.62% of the total revenue while Ola S1 Air and Ola S1 X+ added 18.93% and 10.66% of revenue to the company’s coffers. Importantly, the cancellation rate as a percentage of fully paid and confirmed orders rose to 9.14% in FY24, up from 7.69% in FY23. Ola electric has a gross margin of 12.58% while TVS Motos, Eicher Motors, Bajaj Motors and Hero MotoCorp have gross margins 37.65%, 45.69%, 28.92% and 32.49%, respectively.

Ola Electric’s two wheeler market share rises to 30% in October

EntrackrEntrackr · 8m ago
Ola Electric’s two wheeler market share rises to 30% in October
Medial

After consecutive declines in market share, electric two-wheeler manufacturer Ola Electric regained traction in October with sales increasing during the festive period. According to Vahan data, Ola Electric sold 41,605 units in October, up from approximately 24,726 units in September—a 68% month-on-month rise. Subsequently, the Bengaluru-based company's market share also climbed to 30% in October, compared to 27% the previous month. However, this figure remains lower than its earlier market shares, which stood at 32% in August, 39% in July, and 49% in June. In October 2024, the Indian electric two-wheeler market recorded total sales of 139,031 units. Ola Electric led the market with 29,890 units sold, followed by TVS Motors with 28,188 units, Bajaj Auto with 15,984 units, Ather Energy with 7,309 units, and Hero MotoCorp with 7,137 units. Ola Electric has been under significant scrutiny recently. Earlier this month, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to the company for alleged violations related to consumer rights, misleading advertising, and unfair trade practices. Ola Electric has since addressed almost all after-sales complaints filed with the CCPA, according to a recent clarification. However, the Department of Consumer Affairs is reportedly investigating to confirm these resolutions. Customer complaints and a social media exchange between Ola’s CEO, Bhavish Aggarwal, and comedian Kunal Kamra have kept the company in the public eye. Financially, Ola Electric’s Q1 FY25 results show a modest 2.8% revenue increase, reaching Rs 1,644 crore, compared to Rs 1,598 crore in Q4 FY24, along with a 16.6% reduction in losses to Rs 347 crore. The company’s stock, however, is currently trading at Rs 80, nearly 50% below its peak of Rs 157.53 in mid-August, as the market awaits the Q2 results.

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