Ola could lower its valuation by 16-20 per cent to roughly US$ 4.5 billion, as compared to its earlier funding round, as the Softbank-backed firm looks to go public, Reuters reported citing two persons in the know.
SEBI approved electric two wheeler Ola’s US$ 660 million stock market listing, making it the first EV firm to list, in what is also slated to be amongst India’s biggest share sales this year.
The company is set to take to the Indian bourses early next month, the two persons in the know told the newswire, who spoke on condition of anonymity. Reuters could not get a timely response from the company on this matter.
In September, the company held a US$ 5.4 billion valuation in its most recent financing round, with Temasek serving as the lead investor. Recalibration of the worldwide valuation of tech equities was cited by one source as the reason this might decline.
In order to make the IPO “attractively priced,” meaning that investors may profit, a lower valuation was chosen. Earlier this year, India’s stock market surpassed Hong Kong’s to become the fourth-largest in the world.
