Cab aggregator Ola is eyeing a public offer in early 2022 in a bid to raise at least $1.5-2 billion at a valuation of $12-14 billion, a report in The Economic Times said.
The Bengaluru-based startup will raise half of the capital through primary issue and the rest through an offer for sale (OFS) from some early backers, the report added citing people aware of the matter.
Ola has picked banks, including Citigroup, Kotak Mahindra Bank and Morgan Stanley, to manage its initial public offering (IPO), Bloomberg had earlier reported.
Moneycontrol could not independently verify the report.
“Whatever said and done, Ola’s valuation would be a challenge. Many funds have lowered valuations during the previous year as the Covid pandemic and the subsequent lockdown hampered the travel cab market. Although it’s recovering, it will take time to get stabilised,” said one of the persons cited
Ola CEO Bhavish Aggarwal did not respond to queries sent by the publication.
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In May, Moneycontrol reported that Ola’s early investor Matrix Partners India was selling a part of its stake for $75 million cash at a valuation of $3-3.5 billion.
Temasek and Warburg Pincus received a nod from the Competition Commission of India (CCI) for the proposed investments worth $500 million. This is among the largest investments in the Indian consumer internet space by these funds, a statement had said. Deals beyond a certain threshold require the approval of CCI.Several Indian startups have had made their stock market debuts in 2021, and many more are working towards it. Fintech startup Paytm filed the draft red herring prospectus (DRHP) in July for what is likely to be the largest IPO in Indian history. Nykaa, Policybazaar and Freshworks have also filed the draft documents for their IPOs.