Brokerage shows discomfort at Ola Electric’s rush for IPO instead of first stabilizing internal operations ...Middle East

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Brokerage shows discomfort at Ola Electric’s rush for IPO instead of first stabilizing internal operations
New Delhi: Ola Electric Mobility (Ola Electric) has always been in limelight for various reasons (-ve as well as +ve), the current buzz is its upcoming IPO, says JM Financial Institutional Securities in a report. While the company has taken an early lead in the domestic E2W industry, product-related issues continue. Given the industry is still in a nascent stage, focusing on market share may be misleading. 1) Recent introduction of lower ASP models, 2) adjustments for higher R&D capitalisation, 3) higher cost of operating sales and service network going ahead could reverse the recent improvement in profitability and continue the cash burn. Investments in R&D/product development, Gigafactory

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