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The Securities and Exchange Board of India (SEBI) has officially approved Ola Electric’s initial public offering (IPO) to raise Rs 5,500 crore.

YourStory, citing sources aware of the development, had reported the approval on June 11.

Ola Electric filed its Draft Red Herring Prospectus (DRHP) with the market regulator in December 2023. It plans to use the proceeds from the issue to expand its cell manufacturing plant, undertake research and development, and pay off its debts.

Its competitor, Ather Energy, has also been preparing for an IPO.

Ola Electric joins the ranks of Awfis, ixigo, and Go Digit Insurance who’ve all recently debuted on the public markets. Its IPO, although the first for a two-wheeler electric vehicle (EV) industry, will be eclipsed by Hyundai’s $3 billion public market bid.

In preparation for its IPO, Ola Electric raised Rs 100 crore in debt from Alteria Capital, the Registrar of Company filings showed. This is the second round of debt funding by Ola Electric in 2024.

The Bhavish Aggarwal-led company reported consolidated revenue of Rs 2,782 crore for FY23, up 510% annually. Its loss amounted to Rs 1,472 crore in the said financial year.

According to its DRHP, Ola Electric is expected to debut its first electric motorcycle in the first half of FY26. The company recently secured patents for three e-motorcycle designs, as well as removable batteries.

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