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OLA Electric, Ather Energy to Roll Out IPOs in 2024

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Indian Electric Vehicle (EV) manufacturers OLA Electric and Ather Energy have planned their respective Initial Public Offerings (IPOs) to be rolled out in calendar year 2024.

The companies, which are competitors in the Indian Electric Vehicle market, will be the first homegrown EV manufacturers to go public.

OLA Electric to Roll Out IPO in January 2024, Targets Raising 5,800 Cr.

OLA Electric plans to go public in January 2024 and will submit its Draft Red Herring Prospect (DRHP) to Securities and Exchange Board of India (SEBI) by 20th December 2023.

The company targets raising about Rs. 5,800 crore through its IPO, a major part of which will be invested by OLA in an EV and battery manufacturing unit at its gigafactory in Tamil Nadu.

Ather Energy to Roll Out IPO in 2024-end or Early 2025

As reported by CNBC-TV18 on 14th December 2023, Ather Energy, OLA Electric’s main competitor in the Indian two-wheeler EV space, expects to roll out its IPO by Diwali 2024 or early 2025.

The company is currently seeking inputs on its IPO plans and is expected to hire bankers for the same by March 2024.

Hit by Withdrawal of Govt. Subsidies OLA Slashes Sales Targets, Ather Expects to Volumise Sales before IPO

Brief Recap of Govt. Reducing EV Subsidies under FAME India Phase-II

In May 2023, the Indian Government slashed maximum subsidies for 2-wheeler EV manufacturers under Phase-II of FAME India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India) Scheme from 40% to 15%.

Following this, the sales of 2-wheeler EVs in India slumped during Q2 of FY-24.

OLA Electric Revises Sales Targets, Reduces Revenue Target by 60%

Consequently, OLA Electric and Ather Energy, which command about 26% and 12% share in the Indian 2-wheeler EV market, slashed their sales targets to accommodate reduced demand.

As per a report by Reuters dated 6th December 2023, OLA Electric has reduced its sales target to 3,00,000 e-scooters till March 2024 from its earlier target of selling 8,82,000 units by FY-25. Further, the company’s revenue target for FY-24 has been reset as USD 591 million from the earlier USD 1.55 billion, representing a 60% cut.

Ather Energy to Launch New Family e-Scooter by May 2024, Expand its Retail Network

As for Ather Energy, the company has planned the launch of a new family e-scooter in May 2024. As reported by CNBC-TV18, the company expects this new family e-scooter to increase its sales volume. Apart from the new launch to increase sales, Ather is targeting opening up about 400-450 retail stores before the close of 2024.

About OLA Electric: OLA Electric is the EV arm of OLA Cabs, which produces e-scooters and allied accessories. The company, which has a manufacturing unit in Tamil Nadu, has the largest share in the Indian 2-wheeler EV market. For FY-23, the company reported a top-line of about Rs. 2,782 crore.

About Ather Energy: Founded in 2013, Ather Energy is an Indian manufacturer of 2-wheeler EVs, which has the second-largest share in the Indian 2-wheeler EV market. Major Indian 2-wheeler manufacturer Hero MotoCorp is the company’s largest investor, holding 39.7% of Ather’s equity. Ather reported Rs. 1,784 crore as its revenue for FY-23.