The Securities and Exchange Board of India (SEBI) on Thursday approved Ola Electric’s and Emcure Pharmaceuticals’ initial public offerings.

Both firms filed a draft red herring prospectus (DRHP) with SEBI in December 2023.

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Ola’s move marks the first IPO by an electric vehicle (EV) startup and is set to be one of the largest new-age public offerings in 2024.

The company filed its draft red herring prospectus (DRHP) with SEBI on 22 December, proposing to raise up to Rs 5,500 crore through a fresh issue of shares. Additionally, the IPO includes an offer-for-sale (OFS) component of 95.2 million shares.

According to the latest DRHP filed last week, Emcure Pharmaceuticals IPO would consist of a fresh issuance of equity shares worth ₹800 crore and an Offer of Sale (OFS) of 1.36 crore equity shares by promoters and current shareholders.

Ola aims to generate funds through a combination of fresh issue and OFS, wherein existing stakeholders will sell part of their shares to the public. The DRHP outlines that Ola Electric’s promoter, Bhavish Aggarwal, will offload 47 million shares, representing half of the total OFS.

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 are also set to divest their stakes.

The firm has also kept the option to raise Rs 1,000 crore via pre-IPO placement, a move that would correspondingly reduce the fresh issue size.

As per the reports, Ola intends to use approximately Rs 1,264 crore for the gigafactory’s capacity expansion, Rs 800 crore for debt repayment, and Rs 350 crore for organic growth initiatives.