Ola Cabs, India's multinational ride-sharing company, is allocating stocks worth Rs 400 crores to employees in the run-up to its initial public offer (IPO), the company said Wednesday. The ride-sharing company is also expanding the employee stock options pool (ESOP) to Rs 3000 crores ahead of its IPO.

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"Our expanded ESOP programme, along with the fresh stock allocation of Rs 400 crore enables our key talent to participate in the long term wealth creation opportunities generated by their innovations and the impact they create," Bhavish Agarwal, the company's founder said.

As Ola gears up for its public issue, it also announced its plans to raise $500 million from investors like Temasek Holdings and an affiliate of Warburg Pincus.

Though Ola hasn't made up its mind about the timing of the IPO, a company representative said it will continue to expand across geographies and categories.

India's consumer internet companies are growing at a rapid pace, captivating the global investors looking to divest from China due to its increasing restrictions on tech companies.

Besides, Ola, India's big names like Paytm, Nykaa debut on the stock market this year. Food tech startup Zomato debuted last week as it listed with a stellar premium of 55 percent to the issue price. This strong response from investors surely has encouraged other startups to take the IPO route.

While the ride-hailing business was impacted by pandemic, Aggarwal says the business has rebounded since the restrictions have eased.

"Over the last 12 months, we have made our ride-hailing business more robust, resilient, and efficient," Aggarwal said in a statement. He added that the company is well-positioned to capitalise on the "various urban mobility needs of our customers."

The startup, based out of Bangalore, offers its services in Australia, New Zealand, the UK, and has over a million drivers in more than 100 cities.

Aggarwal's other startup, Ola Electric Mobility is ready to unveil electric scooters built in a manufacturing facility outside Bangalore.

(Edited by : Yashi Gupta)

First Published:Jul 28, 2021 2:01 PM IST