Do not invest in Ola Electric IPO without reading this article completely. On 20th December, Ola has submitted DRHP to SEBI. That means Ola can bring its IPO any time in January.
Ola is a leading company in India in the case of electric two-wheeler electrical scooters with a market share of 36% and according to the report, up to two twenty-eight electrical scooters. Its market in India should grow at a CAGR of 35%. This is going to happen which is a good thing for the future of Ola. Ola Electric is going to collect a total of ₹5,500 Cr with the help of its IPO, which it is going to use to develop its Giga factory.
OLA Electric IPO problem
But the problem is that Ola completed the final round of its fundraising only two months ago with a valuation of three billion dollars and exactly after two months, Ola’s IPO is coming with a valuation of seven billion dollars. Valuation of four billion dollars in just two months. In front of this the company has given this justification that we are going to bring electric cars due to which we are asking for so much valuation but perhaps here, like Paytm, this stock may also be overvalued in the stock market. Last year Ola Electric had posted a loss of fourteen hundred crores against the revenue of ₹2,700 Cr.
Now tell me in the comment section whether you are going to Invest in the upcoming IPO of Ola or not.