Ola IPO is early 2022 to raise $2 billion: Report

The Bengaluru-based startup hopes to raise half of the capital through primary issue and the remaining through an offer for sale (OFS) from some early backers, the report added citing people aware of the matter.

The IPO will be managed by banks, including Citigroup, Kotak Mahindra Bank and Morgan Stanley, Bloomberg had earlier reported.

"Whatever said and done, Ola's valuation would be a challenge. Many funds have lowered valuations during the previous year as the Covid pandemic and the subsequent lockdown hampered the travel cab market. Although it's recovering, it will take time to get stabilised," said one of the persons cited.

The Competition Commission of India (CCI) has already given its nod for proposed investments worth $500 million.

This is one of the largest investments in the Indian consumer internet space by these funds, a statement had said.

Deals beyond a certain limit require the approval of CCI.

Several Indian startups have had made their stock market debuts in 2021, and many are preparing to join it.

Fintech startup Paytm filed the draft red herring prospectus (DRHP) in July for what is likely to be the largest IPO in Indian history, Money Control reported.

Nykaa, Policybazaar and Freshworks have also filed the draft documents for their IPOs, it added.