Markets regulator SEBI has given its approval for the Ola Electric IPO, India’s largest electric two-wheeler maker. This marks the first IPO by an EV startup in India and is set to be one of the biggest new-age IPOs in 2024.

The Bengaluru-based company had filed its draft red herring prospectus (DRHP) with SEBI on December 22, proposing to raise up to ₹5,500 crore through a fresh issue and an offer for sale (OFS) of up to 9.52 crore shares. The EV major is said to be eyeing a $6 billion (around ₹49,800 crore) valuation.

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As per the DRHP, Promoter Bhavish Aggarwal will offload 4.7 crore shares, accounting for 50% of the total OFS. Ola Electric has also exercised the option to raise ₹1,000 crore via pre-IPO placement, which would reduce the fresh issue size accordingly.

Other entities divesting their stakes include Indus Trust, Kaha Wave Ventures, Alpine Opportunity Fund, DIG Investment Internet Fund, MacRitchie Investments, Matrix Partners India Investments, SVF II Ostrich and Tekne Private Ventures XV.

A portion of the proceeds from the IPO will be used to repay loans owed by subsidiaries to Axis Bank and Bank of Baroda. The SoftBank and Temasek-backed electric vehicle giant also plans to use the funds to expand its EV portfolio, gigafactory and sales operations.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.