OLA Electric IPO is all set to kickstart on August 02. The company set the IPO price band at Rs 72-76 per share. However, investors should be aware of the risks involved in an IPO before applying for it. Here are key risks outlined by OLA Electric in the papers filed with SEBI:

1. Supply chain disruptions

According to the papers, the company can experience disruptions in the supply chain or face price increases in components and raw materials, which may further raise the prices of its EV products. This can also hamper the company’s manufacturing and delivery time.

“We could experience supply constraints, increased prices and quality issues in the supply of raw materials used in cell manufacturing, which could adversely affect cell manufacturing at our Ola Gigafactory and the quality of the cells produced therefrom,” said OLA Electric in its RHP. “We import cells from two foreign cell manufacturing companies, and plastic …