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SEBI Approves Ola Electric’s IPO Launch: Company to Raise ₹5,500 Crores

Ola Electric Gets SEBI Approval for IPO

Ola Electric has received approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). Ola Electric is India’s largest electric two-wheeler manufacturer. The company filed the Draft Red Herring Prospectus (DRHP) with SEBI on December 22, 2023, from its headquarters in Bengaluru for the IPO.

Alongside, SEBI has also granted approval for Emcure Pharmaceuticals to launch an IPO. The company had filed its DRHP to SEBI for the IPO two weeks ago. Emcure Pharmaceuticals operates in the medical sector, focusing on the development, production, and marketing of related products.

Ola plans to raise Rs. 5,500 crores through its IPO. According to the DRHP, Ola Electric proposes to offer for sale 9.52 million shares and issue new shares to raise the aggregate amount. The company’s founder, Bhavish Aggarwal, is set to sell 4.73 crore shares.

Furthermore, Emcure Pharmaceuticals plans to issue Rs. 800 crore of new equity shares and sell 1.36 crore equity shares through Offer for Sale (OFS) of the company’s current shareholders.

What is DRHP?

DRHP (Draft Red Herring Prospectus) is a document that provides essential information about a company’s upcoming IPO. It is filed with SEBI and includes details about the company’s financials, its promoters, the risks associated with investing in the company, how the proceeds from the IPO will be used, among other critical information.

What is an IPO?

When a company offers its shares to the public for the first time, it is termed as an Initial Public Offering (IPO). Companies typically go public to raise funds for business expansion rather than taking loans from the market. In such cases, the company sells a portion of its equity shares to the public or issues new shares to gather capital. This process is known as an IPO.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.