OLA IPO Will Hit The Market In Coming Two Years
Ola IPO Plans: Ride-hailing unicorn Ola is plotting to achieve sufficient return in its business. Because Ola plans to launch an IPO in the coming two years. The firm stated that it should achieve imperative profitability targets within two years, later they will go public through an IPO.
The cab aggregator is likely to have taken the initial step towards its IPO goal by earning its maiden annual profit in the year ended 31 March (FY19). Still, Ola should not file its financial matters with the ministry of corporate affairs for Fiscal 2019.
It proposes to list on BSE and NSE. The officials of Ola said that it’s IPO will help existing investors of SoftBank and sell their stakes partially and return funds to their shareholders. Recently, the ARK Impact Asset Management had set up a pre-IPO trust fund as ARK Ola Pre IPO Trust Fund.
The rust will jointly manage by Ola’s individual investors along with ARK, said a source. A source added that the ARK will invest trust fund in-vehicle set up. Moreover, ARK invests up to Rs 36.88 crore in Ola’s parent ANI Technologies. It invests for its continuous Series J round at above $7 billion valuations.
An assessment report submitted to Ola’s stakeholders in February 2017 estimated a profit by the cab-hailing giant of nearly Rs 1,170 crore in FY19, with a free cash flow of Rs 698 crore.
According to the source, Ola’s revenue had jumped 44% to Rs 1,860 crore in FY18 (2017-18) from nearly Rs 1,286 crore in FY17 (2016-17).