The anticipation for the Bhavish Aggarwal-led Ola Electric's initial public offering (IPO) is palpable, with the Indian two-wheeler electric vehicle (EV) market currently at a 5% penetration level, in contrast to China's 70%. Despite this potential, established competitors like TVS, Bajaj, and Hero are expanding their market share in the EV space, rising from approximately 20% to 40% within nine months. Ola Electric's speculated market capitalization at the time of its IPO stands at over $7 billion. However, the company's draft red herring prospectus (DRHP) has raised concerns, listing 77 risk factors, including 52 internal risks that could impact operations. The DRHP suggests that the founder might use the IPO proceeds for a bonfire in the harsh funding winter, at the cost of the market. The responsibility for overseeing and enabling the IPO falls on the Securities and Exchange Board of India (SEBI), with some commentators suggesting that the regulatory body should scrutinize the viability of allowing Ola Electric's IPO to proceed, given the significant risks outlined in the DRHP.
Should SEBI allow the Ola Electric IPO to go through? @sahaprd writes in today’s longform. https://t.co/YeaF67tyPE
Curious about the imminent Ola Electric IPO and wondering whether to invest? Here's the lowdown from @sahaprd based on OE's recently filed DRHP. His recommendation: should SEBI even allow the IPO! https://t.co/HSrMIOma2F
Ola Electric's DRHP is a minefield. It suggests that the founder is going to use the IPO proceeds for a bonfire in the harsh funding winter, at the cost of the market. All eyes are on Sebi now. I write for @MorningContext https://t.co/6pk4VYDCjk
A reading of the Bhavish Aggarwal-led company’s DRHP tells us that the bar for startups to list on the stock market has hit the floor. A fool and his money are soon parted, but the buck for enabling Ola Electric's listing stops with SEBI. By @sahaprd. https://t.co/P1vKrdWqeO
Ola Electric’s IPO document is a minefield for any prospective investor. The draft prospectus identifies 77 risk factors, including 52 internal risks, related to the operation of the company. The buck for enabling this stops with SEBI, writes @sahaprd. https://t.co/YeaF67tyPE
Hard not to be excited about @OlaElectric IPO / 2W EVs in India. Market is ~5% penetrated vs. 70% in China.. But incumbents (TVS, Bajaj, Hero) are very strong and gaining share in EV (combined share up from ~20% to ~40% in 9 months) ..and at $7b+ speculated market cap at IPO -… https://t.co/sp9Z0Xx088