Post Ola Electric, now Ola Cabs meets investment banks, weighs IPO

Ola

ANI Technologies, the parent company of Ola Cabs, initiated preliminary discussions with investment banks this week as the holding firm evaluates the potential launch of an initial public offer (IPO) of the ride hailing business, three people familiar with the development said on the condition of anonymity.

The development comes on the back of sister firm Ola Electric filing its draft red herring prospectus with market regulator Sebi in December to raise around Rs 7,250 crores via an IPO, the first attempt at a public listing by an Indian electric vehicle (EV) firm.

Ola

TVR INSTITUTE

“Ola Cabs held early stage discussions with a few global and domestic investment banks on April 19 in Bangalore. More meetings with other banks may happen later,” one of the people cited above said.

The person added that no final call had been taken as yet on the listing and depending on market conditions, plans may change later.

This news indicates that Ola Cabs, the ride-hailing giant in India, is actively exploring an initial public offering (IPO) to raise funds. Here’s a breakdown of the key points:

• Following Ola Electric: This comes after Ola Electric, their electric vehicle arm, also considered an IPO but later shelved the plans.
• Meeting Investment Banks: Ola Cabs is reportedly meeting with investment banks to discuss the possibility of an IPO. These banks would help Ola navigate the IPO process, such as preparing necessary documents and attracting investors.
• Considering IPO Valuation: The article mentions Ola is weighing the IPO, which suggests they are evaluating the potential valuation they could receive in the stock market.
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Here are some additional details to consider:

• Previous Attempt: In December 2021, Ola Cabs reportedly planned an IPO but shelved it due to market uncertainties.
• Current Market Conditions: It’s important to understand the current state of the Indian stock market and investor sentiment towards ride-hailing companies. This will likely influence Ola Cabs’ decision to proceed with an IPO.
• Fund Raising Needs: The news doesn’t specify the reason behind Ola Cabs seeking to raise funds through an IPO. They might be looking for capital for expansion, technological advancements, or debt repayment.

What to watch for next:

• Official Announcement: If Ola Cabs decides to move forward with an IPO, they will release an official announcement with details like the proposed timeline, IPO size, and share price range.
• Market Response: The success of the IPO will depend on how investors react to Ola Cabs’ financials, future growth prospects, and overall market conditions.

Remember:

• This is just an initial exploration stage. An IPO might not be finalized.
• Before investing in any IPO, it’s crucial to thoroughly research the company’s financials, business model, and risk factors. You’ll have more information to assess the suitability of the investment once the IPO prospectus is released