Olectra Greentech Ltd

- Olectra Greentech is constructing a new manufacturing facility with a total project cost of approximately Rs. 750 crores. - The funding model includes internal accruals and debt; the debt sanctions (~Rs. 500 crores) are in advanced stages and expected soon. - Approximately Rs. 100 crores have already been spent from internal accruals. - Trial production at the new facility started February 2, 2024, with expectations to complete trials in about 2 months. - The plant will initially have a capacity of 2,500 buses for FY 2025, expanding to 5,000 by end of that year and potentially 10,000 in the following year. - The facility will also assemble batteries (not manufacture), leveraging partnerships like BYD, aiming for localization. - Currently, capital raising plans prioritize internal accruals and debt; equity raises may be considered at an appropriate future time.

- Olectra Greentech aims to double sales every two years for the next four years, targeting a multi-fold increase in turnover (Page 15). - They achieved approximately Rs. 1,130 crores last year and Rs. 865 crores in the first nine months of the current fiscal, projecting significant growth (Page 15). - For FY 24-25, the company targets delivering a minimum of 2,500 buses, up from about 650-700 buses this year, indicating strong volume growth (Page 15, 16). - Production capacity is planned to reach 5,000 buses per year by June/July 2025, with potential expansion to 10,000 buses next year based on demand (Page 16). - AMC (Annual Maintenance Contract) income will continue for all buses sold, providing recurring revenue for 12 years (Page 19). - Expansion into new orders and partnerships is expected to further drive growth (Pages 8, 16). Overall, Olectra exhibits optimistic long-term growth plans, focusing on capacity ramp-up and sustained revenue from sales and after-sales services.

- Olectra Greentech targets a multi-fold increase in turnover, aiming to double sales every two years over the next four years (Page 15). - They plan to increase bus deliveries substantially, targeting about 2,500 buses next year versus 650-700 this year, indicating significant revenue growth (Page 15, 16). - EBITDA and PAT have shown strong growth; 9-month consolidated EBITDA rose 40%, PAT up 62% compared to the previous year (Page 3). - The company aims to expand capacity from current levels to 5,000-10,000 buses per year based on demand (Page 9). - Operating income and AMC income from after-sales services for sold buses will additionally drive profitability over 12 years of service contracts (Page 19). - Growth is supported by expanding into new segments like electric tippers and insulators, which are showing promising order pipelines (Page 5, 12).

- Current order book: Over 8,100 buses to be delivered in the next 18 to 24 months. - Large confirmed order: 5,150 buses from MSRTC, targeted delivery of 2,500 buses in FY 24-25 and the balance in FY 25-26. - Additional orders: About 3,000 buses L1 status with BEST and 300 buses L1 with PMC Pune, both under negotiation. - New private orders: Around 40 buses recently received; expecting inquiries and orders from private entities like Freshbus. - Pending orders: Negotiations ongoing for around 3,000 buses for BEST; these are expected to conclude in the next few weeks. - Expansion plans: Capacity to scale up to 5,000 buses by June-July 2024, expandable to 10,000 if needed based on demand. - Maintenance and AMC income expected from all buses sold, including the bulk orders.

- Currently, Olectra Greentech is focusing on raising funds through debt and internal accruals for their new factory construction, with about ₹500 crores debt expected to be sanctioned soon. - The equity raise resolution has expired, and no equity fundraising is underway at the moment. - Management indicated that for the new facility, they are temporarily going with debt and internal accruals. - Capital raising from the market or promoters is under deliberation, and they will communicate at an appropriate time. - No concrete plans or timelines for equity fundraising have been confirmed as of now. In summary, the immediate fundraising approach is debt-based, with equity plans being considered but not finalized.