Ola Cabs IPO: Company looking at $500 mn IPO, aims valuation of $5 bn: Report

SoftBank-backed Ola Cabs is planning an initial public offering (IPO) to raise $500 million in the next three months, Reuters reported quoting sources. The ride hailing Company is planning to raise funding from the primary market at the valuation of $5 billion.

In this regard, Ola Cabs' parent entity ANI Technologies has reported started preliminary discussions with investment banks. The company is planning to choose the lead banker in the next two to three weeks. 

Ola Cabs is in talks with investment banks, including Bank of America, Goldman Sachs, Citi, Kotak and Axis for the IPO, Reuters reported citing sources.

In December 2023, Ola Electric filed its draft red herring prospectus with market regulator Sebi to raise around Rs 7,250 crore via an IPO. 

According to two of the sources quoted in the report, the company is currently engaged in discussions with investment banks such as Goldman Sachs, Bank of America, Citi, and India's Kotak and Axis. It plans to finalise IPO advisors within a month.

This marks Ola's second IPO attempt, following a 2021 plan to raise up to Rs 8,300 crore, which was scrapped. Despite being valued at Rs 58,300 crore during a 2021 fundraising round, internal assessments by investors have reduced Ola's valuation. Vanguard, an Ola shareholder, downgraded its internal valuation to Rs 15,800 crore in February.