Ola In Talks With Banks For IPO Advisors: Report This marks Ola's second try at going public, following a failed attempt in 2021 to raise USD 1 billion.
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Ola Cabs plans to submit its Initial Public Offering (IPO) papers for approval to the Securities and Exchange Board of India (SEBI) within the next three months as it eyes to secure USD 500 million through its IPO, targeting a valuation of approximately USD 5 billion.
According to the reports, the ride-hailing aggregator is 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.
This marks Ola's second try at going public, following a failed attempt in 2021 to raise USD 1 billion.
In 2021, Ola was valued at USD 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 USD 1.9 billion in February.
On December 22, 2023, Ola Electric submitted its Draft Red Herring Prospectus (DRHP) to the 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 INR 10.
Meanwhile, the company has made history by initiating cab operations at the Maharishi Valmiki International Airport in Ayodhya. This strategic move makes Ola to be the first cab service to come to Ayodhya Airport, and it's a commitment towards expanding its services to emerging cultural and tourist destinations across India.
Founder Bhavish Aggarwal announced the news on LinkedIn that Ola will commence its operations at the Ayodhya airport. He further highlighted the dedication of the company to provide a seamless travel experience by establishing a dedicated pickup zone where the staff will be available round the clock to assist travellers.
Company's mobility business has demonstrated a remarkable financial performance in FY23 in India, which has reported a profit of INR 250 crore when compared to a loss of INR 66 crore in FY22.
