Ola Cabs IPO coming soon! Bhavish Aggarwal's company in talks with banks for initial public offering advisors: Report
Ola Cabs IPO: Ride-hailing aggregator Ola Cabs aims to secure $500 million through its initial public offering (IPO), targeting a valuation of approximately $5 billion, news agency Reuters reported on Friday. As stated by sources in the report, Ola plans to submit its IPO papers for approval to the Securities and Exchange Board of India (SEBI) within the next three months. SoftBank-backed Ola is presently in talks with investment banks including Goldman Sachs, Bank of America, Citi, Kotak, and Axis.
It aims to conclude the selection of IPO advisors within one month, the report stated. This marks Ola's second try at going public, following a failed attempt in 2021 to raise $1 billion. In 2021, Ola was valued at $7 billion during a fundraising round.
However, its investors have since reduced its valuation in internal assessments. Vanguard, a shareholder of Ola, decreased its internal valuation of the company to $1.9 billion in February, as per a Reuters report citing a filing. On December 22, 2023, Ola Electric submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).
The proposed offering comprises a fresh release of equity shares amounting to ₹5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹10. As per the initial draft papers filed with SEBI, Bhavish Aggarwal, the founder of Ola Electric, intends to sell around 47.4 million shares in the SoftBank Group-backed electric scooter manufacturer, as reported by Mint. Meanwhile, in other news, Ola Cabs is closing its international operations to focus on expanding its electric fleet in India.
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