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Ola Electric has received approval from the markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The Bhavish Aggarwal-led electric vehicle (EV) company plans to raise Rs 5,500 crore through the IPO in a combination of a fresh issue of shares and an offer for sale, said sources aware of the development.

Ola Electric had filed its Draft Red Herring Prospectus (DRHP) with the SEBI in December 2023. If things go as planned, the company will become the first one from the Indian two-wheeler EV industry to go public.

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Key takeaways from Ola Electric’s DRHP filing

The company joins the likes of Go Digit, Awfis, and ixigo who have tapped the public markets this year, and opens the window for a larger number of Indian startups who want to list on the Indian stock markets.

Others like Firstcry, Unicommerce, and Mobikwik have also announced plans to list on Indian bourses.

In Ola Electric’s DRHP, the company said it will use the proceeds of the public issue for expanding its cell manufacturing plant, research and development, repaying debt, and organic growth initiatives through its Ola Electric Technologies unit, among other things.

It undertakes R&D activities in India, the United Kingdom, and the United States, focusing on developing new EV products and core EV components such as battery packs, motors, and vehicle frames.

Ola Electric reported consolidated revenue of Rs 2,782 crore for FY23, an annual growth of 510% even as its loss amounted to Rs 1,472 crore. For the first quarter of FY24, the company reported a total revenue of Rs 1,272 crore and a loss of Rs 267 crore.

The company has emerged as the leading EV manufacturer in India, garnering around 52% market share. Among its closest competitors is Bengaluru-based EV startup, Ather Energy, which has plans to go public next year.

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director at Ola Electric.)