In the first and the largest-ever Initial Public Offering (IPO) in the Indian Value Added Services space, OnMobile Global is tapping the capital markets with a Rs 350-400 crore IPO. The company, in which Infosys Technologies holds a 14 per cent stake, will use the proceeds for its expansion and acquisition plans.
The issue will be open for subscription between January 24 and January 29, 2008. The company has fixed a price band of Rs 425-450 per equity share.
OnMobile Global will offer 10,900,545 equity shares – of which there is a proposal for a fresh issue of 8,613,356 and offer for sale of 2,287,189 equity shares – of Rs 10 each. The price will be determined through a book building process.
Addressing a press conference here today, Onmobile CEO and CO-founder Arvind Rao said that the company will use the proceeds for its expansion and acquisition plans.
"We will expand our research and development team, purchase equipment for the company's offices in Bangalore, Mumbai, Delhi and other customer sites. The proceeds will also be used to meet working capital requirements, repayment of loan and to fund expenditures for general corporate purposes," Rao said.
Deutsche Equities India Private Ltd and ICICI Securities Ltd are the Book Running Lead Managers to the issue.
The company is also looking at making acquisitions, both in the country and overseas, he said. Rao, however, declined to comment on the proposed acquisitions.
The IPO would constitute 18.99 per cent of the fully diluted post issue paid-up capital of the company. Subsequent to the IPO, the company intends to list on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
On a question of Infosys diluting its stake in the company, Rao said the company will continue to hold its stake in Onmobile.
OnMobile provides a host of value-added services, mobile content distribution, interactive media portals, 1-to-1 direct marketing via mobiles, and m-commerce in the fast-growing Indian telecom market with 150 million plus subscribers. The company's competitors include IMI Mobile, Cellebrum and Mauj, among others. |
