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Ola said to pick Kotak Mahindra Bank, Citigroup for $1 billion IPO


Mumbai: Ola has chosen banks, together with Citigroup Inc. and Kotak Mahindra Financial institution Ltd., to handle its preliminary public providing (IPO) that might elevate about $1 billion, Bloomberg
reported Monday, citing individuals acquainted with the matter.

The ride-hailing firm, backed by SoftBank Group Corp. and Tiger International Administration, has additionally picked Morgan Stanley for the itemizing, mentioned the individuals, who requested to not be named as the knowledge is personal. The Bangalore-based startup might search a valuation of greater than $8 billion within the IPO and will file its draft crimson herring prospectus by October.

Particulars of Ola IPO—together with dimension and timeline—might nonetheless change as deliberations are ongoing, the individuals mentioned. Extra banks might be added later, they mentioned. A consultant for Citi declined to remark, whereas representatives for Kotak Mahindra and Morgan Stanley didn’t instantly reply to requests for remark.

Pre-IPO Funding

Based on a July 9 ET report, Warburg Pincus and Singapore authorities’s funding fund Temasek Holdings
bought shares worth $500 million from present buyers of Ola in a secondary deal. The transaction
received approval of India’s antitrust regulator — simply two weeks in the past.

Individually, Ola
has also expanded its worker inventory choices pool to Rs 3,000 crore and given staff an extra Rs 400 crore in shares within the run as much as the IPO.

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Startup IPOs in 2021

Talks of an Ola IPO come at a time when a robust pipeline of Indian startups
are readying to tap the public market within the coming months. Fintech startup Paytm, e-commerce agency Flipkart, and edtech startup Byju’s are additionally getting ready for his or her first-time share gross sales.