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Ola selects banks, $1 billion IPO expected to be launched in October
Ola is among the clutch of companies in India which have taken the IPO route to raise funds. The raging IPO frenzy has set a record of sorts this month with the first 20 days of August witnessing as many as 23 filings seeking regulatory permission to launch IPOs.
Ride sharing company Ola has selected Citigroup and Kotak Mahindra Bank to manage its initial public offering (IPO), which is expected to be launched in October, Bloomberg reported. Ola is expected to raise $1 billion through the IPO.
The company, backed by SoftBank Group Corp. and Tiger Global Management, has also picked Morgan Stanley for the listing, Bloomberg reported citing people aware of the developments.
Ola is among the clutch of companies in India which have taken the IPO route to raise funds. The most notable among them was food-delivery firm Zomato, which made stellar debut last month.
Berkshire Hathaway Inc-backed Paytm and Softbank backed hospitality company Oyo Hotels are among other Indian startups set to enter markets this year. Flipkart, the Indian e-commerce giant controlled by Walmart Inc and digital education startup Byju's are also preparing for their first-time share sales.
Ola currently partners with about 1.5 million drivers across 250 cities in India, Australia, New Zealand and the UK. In July, the rival of Uber raised $500 million from investors including Temasek Holdings Pte and an affiliate of Warburg Pincus.
The raging IPO frenzy has set a record of sorts this month with the first 20 days of August witnessing as many as 23 filings seeking regulatory permission to launch primary share sales worth around ₹40,000 crore. Eight companies have already raised over ₹18,200 crore this month.
Prominent among them was Devyani International whose IPO opened for subscription between August 4 and August 6. Devyani International IPO had a price band of ₹86 to ₹90 per equity share. It is the largest franchisee of Pizza Hut, KFC and Costa Coffee in India.
In fact, August 4 was the biggest day for the street as Exxaro Tiles, Krsnaa Diagnostics and Windlas Biotech launched their IPOs in August.
The depth of investor interest, especially from the retail, is very visible with many IPOs being oversubscribed over 100 times and many brokerages say total number of issues may well top the 100-mark this year.
