– By Dilip Davda
- The company is a vertically integrated mobility and energy company.
- After gaining initial grounds post its 2-wheeler EVs, it came in limelight, but dismal performance dragged down its fancy.
- The company posted losses for all the years reported in the offer document.
- It is struggling to regain the lost glory, and its NAV below the face value.
- The RI is at a negative P/E and based on losses, it is aggressively priced.
- There is no harm in skipping this costly and risky RI offer.
ABOUT COMPANY:
Ola Electric Mobility Ltd., (OEML) is vertically integrated mobility and energy company with in-house capabilities across electric vehicles, battery cell technology and battery energy storage systems (“BESS”). The company operates two business segments: (i) Automotive, in which it designs, manufactures and sells electric two-wheelers (“E2Ws”) and related components and services; and (ii) Cell, in which it develops and manufacture battery cells for applications across mobility and energy storage.
Its business is supported by in-house capabilities spanning cell technology, battery systems, electric powertrain, electronics, software and manufacturing. The Ola Futurefactory provides the manufacturing base for Automotive business, while the Ola Gigafactory supports Cell business and enables the integration of its in-house cell technology across mobility and energy-storage applications.
OEML’s Automotive business comprises a portfolio of electric scooters and motorcycles across multiple customer segments, supported by common product architectures and in-house technologies. Its portfolio includes the S1 X and S1 Pro scooter ranges and the Roadster X and Roadster X+ motorcycle ranges. Its products are distributed through a combination of its digital channels, company-owned experience infrastructure and an expanding dealer-led distribution network. Under the dealer-led model, dealer partners provide local market presence and manage store setup, vehicle inventory and spare-parts stocking, while its company-owned stores increasingly serve as brand and product experience centers. This model enables it to combine its product and technology platform with the local reach and customer relationships of dealer partners. It has also expanded its portfolio with the S1Z, which brings its indigenous Bharat Cell LFP technology into a more accessible mobility product and forms part of the broader integration of its Cell and Automotive businesses.
OEML’s installed base has exceeded ten lakh customers, achieving production of its ten-lakh vehicle on September 16, 2025, while providing an established base for parts, paid repairs, maintenance, accessories, software and other post-warranty offerings. The Ola Gigafactory is the foundation of its Cell business. Its indigenously developed 4680 NMC Bharat Cell has progressed from validation into commercial deployment in its vehicles. Its Cell portfolio also includes the 46100 LFP Cell, which has received BIS certification, providing a complementary chemistry to its NMC platform. Its Cell technology roadmap spans NMC and LFP chemistries and different cell formats for applications across performance-oriented mobility, mass mobility, distributed storage and larger commercial, industrial and utility-scale energy-storage systems.
In August 2026, the Ministry of Heavy Industries approved revised timelines applicable to Ola Cell Technologies under the Advanced Chemistry Cell PLI programme, providing a full five-year incentive window through CY2031 for its 20 GWh allocation. Company’s Cell and battery technology capabilities extend beyond electric mobility into energy-storage applications. Ola Shakti addresses residential and distributed energy-storage applications, including home backup and rooftop-solar integration. It is also developing larger-format storage solutions through the Shakti and Mahashakti product platforms for distributed commercial, industrial and utility applications.
OEML’s energy-storage portfolio enables it to apply common capabilities across cell technology, battery systems, power electronics and software across different applications. It has also entered into a memorandum of understanding with Axis Energy for the supply of up to 20 GWh of battery cells through 2032 in connection with energy-storage applications. The offer document is silent on its employees’ strength aspect.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 370272665 equity shares of Rs. 10 each at a fixed price of Rs. 27 per share to mobilize Rs. 999.74 cr. The RI opens for subscription on October 22, 2026, and will close on October 30, 2026. The company is offering RI in the ratio of 2 for 25to its eligible stakeholders as of the record date of October 13, 2026. The company is asking for Rs. 16.20 per share on application for number of shares applied. The balance Rs. 10.80 will be payable by one or more call as decided by the board of directors. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 15.75 cr. for this RI process, from the net proceeds, Rs. 350.00 cr. for repayment/prepayment of certain borrowings, Rs. 400.00 cr. For expenses on organic growth initiatives, Rs. 233.99 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 4628.41 cr. (4628408313 equity shares) will stand enhanced to Rs. 4998.68 cr. (4998680978 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 13496.44 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit / – (loss), of Rs. 4932 cr. / Rs. – (2276) cr. (FY24), Rs. 2460 cr. / Rs. – (1833) cr. (FY25), and Rs. 896 cr. / Rs. – (428) cr. (FY26). For Q1 of FY27 ended on June 30, 2026, it posted a loss of Rs. – (336) cr. On a total income of Rs. 484 cr. Its top line kept falling for year-on-year and marked losses for all these years. Its NAV stood at Rs. 8.14 as of June 30 2026. Its RoNW remained negative for reported periods.
DIVIDEND POLICY:
The company has not paid any dividends for the last three years. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 544225 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 35.68 on October 12, 2026, and opened on an ex-right basis at Rs. 34.45 on October 13, 2026. Since then, it has marked a high/low of Rs. 36.39 / Rs. 32.72. The scrip last closed at Rs. 33.00 as of October 21, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 56.66 / Rs. 20.83.
The promoters’ holding has been at 32.97% for the last quarter ended on Sept. 30, 2026. The counter is trading little above its RI price with operations from vested interests.
CONCLUSION:
OEML is a vertically integrated mobility and energy company. After gaining initial grounds post its 2-wheeler EVs, it came in limelight, but dismal performance dragged down its fancy. The company posted losses for all the years reported in the offer document. It is struggling to regain the lost glory, and its NAV below the face value. The RI is at a negative P/E and based on losses, it is aggressively priced. There is no harm in skipping this costly and risky RI offer.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
