Ola Cabs, the renowned provider of app-based cab services, is gearing up to launch its Initial Public Offering (IPO) soon. With Ola Electric already making strides in its IPO preparations, Ola Cabs is now joining the ranks, indicating a significant move in the Indian market.
Reports suggest that Ola Cabs could potentially launch its IPO within the next three months
Aiming to raise over Rs. 4,000 crores in its initial public offering. This move comes on the heels of Ola Electric submitting its draft prospectus to the Securities and Exchange Board of India (SEBI), indicating a flurry of activity within the Ola ecosystem.
So, how substantial could Ola’s IPO be? According to sources
Ola Cabs might raise $500 million (approximately Rs. 4,168 crores) through its IPO in the coming three months. If successful, this fundraising endeavor could catapult Ola Cabs to a valuation of around $5 billion, showcasing the immense potential of the Indian ride-hailing market.
In preparation for its IPO, Ola Cabs has initiated discussions with several investment banks
ANI Technologies, the parent company of Ola, is currently engaged in talks with multiple investment banks to finalize the lead banker for its IPO. This process is expected to be completed within the next two to three weeks, with prominent investment banks such as Bank of America, Goldman Sachs, Citibank, Kotak Mahindra Bank, and Axis Bank being actively involved in discussions.
Moreover, Ola’s IPO could pave the way for Ola Electric to follow suit
Ola Electric, the manufacturer of electric scooters, has already commenced its IPO preparations and has submitted its draft prospectus to SEBI. Through its IPO, Ola Electric plans to raise approximately Rs. 7,250 crores, indicating a significant capital infusion into the electric vehicle segment.
Ola Cabs’ impending IPO signifies a pivotal moment in the company’s journey, poised to unlock substantial value and potential growth opportunities. With both Ola Cabs and Ola Electric making strides in their IPO preparations, the Indian market eagerly awaits these landmark offerings, which could reshape the dynamics of the ride-hailing and electric vehicle industries in India.