Ola Electric gets Sebi’s approval to launch IPO

New Delhi: Electric two-wheeler company Ola Electric has received capital markets regulator Sebi’s clearance to raise funds through an initial public offering (IPO) — the first issue by an automaker in the country in more than 20 years, people familiar with the matter said on Tuesday.

The proposed IPO is a combination of a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale of 9.52 crore equity shares by promoters and investors, according to the draft red herring prospectus (DRHP).

The Bengaluru-based company, which filed preliminary IPO papers with Sebi in December 2023, has now obtained its nod to float the public issue, they added.

Going by the draft papers, proceeds from the fresh issue will be used for capital expenditure to be incurred by the subsidiary OCT for the Ola Gigafactory project, payment of debt by subsidiary OET, investment into research and product development, expenditure for organic growth initiatives, and general corporate purposes.