Ola Electric has been approved by the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), aiming to raise Rs 7,250 crore. This marks a significant milestone as Ola Electric becomes the first Indian electric vehicle (EV) two-wheeler company to go public, emphasizing its commitment to sustainable mobility.

The company filed its draft red herring prospectus (DRHP) with SEBI on December 22, 2023, and has since prepared for this fundraising. The IPO will consist of a fresh issue of Rs 5,500 crore and an offer for sale of Rs 1,750 crore. Founder Bhavish Aggarwal plans to sell 47.3 million shares.

There may also be a pre-IPO placement worth Rs 1,100 crore, potentially adjusting the size of the fresh issue. Funds from the IPO are planned for capital expenditures (Rs 1,226 crore), debt repayment (Rs 800 crore), and R&D (Rs 1,600 crore), with an additional Rs 350 crore allocated for potential acquisitions and strategic partnerships.

This IPO comes as Ola Cabs, another entity within the Ola ecosystem, also explores a public offering, signaling a convergence of mobility and technology in India’s market. Ola Electric holds a 52% market share in the EV two-wheeler sector and has shown a robust growth trajectory, with a recent 54% year-on-year increase in unit registrations.

Despite a 510% rise in revenues to Rs 2,782 crore in the fiscal year ending March 2023, the company's net losses widened to Rs 1,472 crore, primarily due to increased operational and R&D costs. As of June 30, 2023, Ola Electric reported a net worth of Rs 2,111 crore. The forthcoming IPO is keenly anticipated for its potential impact on India's EV market and broader sustainability efforts.