Banks including Citigroup Inc. and Kotak Mahindra Bank Ltd. are selected by Ride-hailing startup Ola to manage its Mumbai initial public offering that could raise about $1 billion, reported Bloomberg.
“The company, backed by SoftBank Group Corp. and Tiger Global Management, has also picked Morgan Stanley for the listing,” said the people, as quoted by Bloomberg. The name of people not be mentioned as the information provided is private.
One person said, “The Bangalore-based startup could seek a valuation of more than $8 billion in the IPO and could lodge a filing as soon as October”.
In the coming months, a strong pipeline of Indian startups that are ready to tap the IPO market would be joining by the 11-year-old Ola.
According to the Bloomberg News report for the first-time Paytm, the country’s leader in digital payments, Flipkart, the Indian e-commerce giant controlled by Walmart Inc., and digital education startup Byju’s are also preparing for their share sales.
Size and timeline could still change of Ola’s IPO as deliberations are ongoing and more banks could be added later, said the people.
No immediate response was given by representatives for Kotak Mahindra, Morgan Stanley and, Ola to requests for comment. Whereas a representative for Citi declined to comment.
Ola currently partners in India, Australia, New Zealand, and the U.K. With about 1.5 million drivers across 250 cities. In July the Uber Technologies Inc.’s rival raised $500 million from investors including Temasek Holdings Pte and an affiliate of Warburg Pincus.
