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X to withhold certain accounts, posts in India following govt orders

EntrackrEntrackr · 1y ago
X to withhold certain accounts, posts in India following govt orders
Medial

X, formerly known as Twitter, disclosed on Thursday that it will withhold certain accounts and posts in India following executive orders from the Indian government. “The Indian government has issued executive orders requiring X to act on specific accounts and posts, subject to potential penalties including significant fines and imprisonment,” Global Government Affairs, an affiliate of X, said in a post on the social networking site. The company added that it will block these accounts and posts in India, but it disagrees with the actions and maintains that “freedom of expression should extend to these posts.” Moreover, affected users have been informed about the actions taken by the company. “Due to legal restrictions, we are unable to publish the executive orders, but we believe that making them public is essential for transparency. This lack of disclosure can lead to a lack of accountability and arbitrary decision-making,” it said. It further said that a writ appeal challenging the Indian government’s blocking order is pending. It may be recalled that the Karnataka High Court had dismissed X’s plea challenging the Indian government’s orders to block accounts and posts. It is likely the first time X and the Indian government are at loggerheads since Elon Musk took over the micro-blogging platform. Last year, Musk had hinted at a more cooperative arrangement with local governments, especially in India. “The rules in India for what can appear on social media are quite strict and we can’t go beyond the laws of the country… If we have a choice of either our people go to prison or we comply with the laws, we will comply with the laws…,” Musk told BBC during an interview when asked about the country banning a documentary on the 2002 Gujarat riots. Before Musk came in, Twitter and the Indian government went head-to-head multiple times over the blocking of content. In some cases, Twitter did not comply with the government directives to blocking accounts and posts. The public spat reached its peak during the farmer protests a few years ago. Police raided the offices of Twitter India in Delhi and Gurgaon after the social networking platform labelled “manipulated media” to one of tweets by a BJP leader. Jack Dorsey claimed that India had threatened to shut down the platform if the company did not comply with the government requests. “It manifested in ways such as: ‘We will shut Twitter down in India’, which is a very large market for us; ‘We will raid the homes of your employees’, which they did; and this is India, a democratic country,” Dorsey said in an interview. That said, X’s latest disclosure on government requests to block certain posts and accounts comes at a time when farmer protests have resumed in certain parts of the country. The government has not responded to X’s revelations yet.

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.

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