SoftBank-backed FirstCry, Ola Electric to file IPO papers by December-end
Ola Electric and FirstCry, both backed by SoftBank, will submit their draft IPO papers to the Securities and Exchange Board of India (SEBI) by next week, as per Moneycontrol. For those unfamiliar, a DRHP is the preliminary registration document crafted by merchant bankers. It is prepared for companies aiming for IPOs, particularly in the case of book-building issues.
Details about FirstCry's IPO and recent investments
FirstCry plans to raise $500 million (Rs. 4,160 crore) through its IPO, with 60% being the offer for sale (OFS) component and the rest as the primary part. The company is expected to list after the general election in 2024. Recently, Ranjan Pai's MEMG Family Office, Harsh Mariwala's Sharp Ventures, and Hemendra Kothari's DSP family office invested Rs. 435 crore in FirstCry. The Pune-based start-up will be the first major e-commerce firm to go public after Nykaa's listing in 2021.
Ola Electric recently closed a Rs. 3,200 crore funding round
Ola Electric has enlisted Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024. The planned IPO will include both primary and secondary share offerings. The electric vehicle manufacturer recently closed a Rs. 3,200 crore funding round with a mix of debt and equity from prominent investors led by Temasek and debt from the State Bank of India (SBI). The funds will be used to expand Ola's EV business and establish India's first Lithium-ion cell manufacturing facility.
Ola Electric is expanding its manufacturing capacity
Ola Electric CEO Bhavish Aggarwal announced that the company's total manufacturing capacity would grow to 20 lakh units, from the current 10 lakh per annum within the next six to nine months. The capacity can be expanded up to one crore per annum, which is their ultimate goal. Ola projects its sales to reach 30 lakh in FY24 and 90 lakh by FY25, while in FY23, the company sold 15 lakh units of EVs.
Ola Electric's financial performance and projections
In FY23, Ola Electric's consolidated revenue reached Rs. 2,782 crore, a nearly 510% increase, but its net loss widened to Rs. 1,472 crore from Rs. 784 crore in FY22. The company informed investors and bankers on December 6 that it is targeting an EBITDA profitability of Rs. 803 crore in FY25 and expects its EBITDA loss to decrease to Rs. 950 crore in FY24. Ola Electric has projected a revenue of Rs. 4,655 crore in FY24.
