NEW DELHI: Domestic handset maker Micromax Informatics plans to raise a little over Rs 426 crore by hitting the capital markets with an initial public offer of 2.15 crore shares. This values the company, which entered the mobile handset business only three years ago, at close to a $1 billion. In its draft red herring prospectus (DRHP), the company said it might also consider participation by anchor investors. JM Financial, Citigroup, Edelweiss and Nomura are the book running lead managers to the issue.
Micromax leads a pack of domestic companies, which includes Karbonn Mobiles, Spice Mobiles, Videocon Industries and Lava International, that have made inroads into the Rs 30,000-crore mobile phone market, traditionally dominated by multinationals such as Nokia, Samsung, LG and Motorola. Influential research firm IDC, in a report last week, said that domestic handset makers had capitalised on Nokia's misfortunes in India, with their share of the market doubling to 33% during the past six months. Micromax, which according to IDC is the largest domestic player with 4.1% market share, first launched phones with a 30-day battery backup.
Micromax leads a pack of domestic companies, which includes Karbonn Mobiles, Spice Mobiles, Videocon Industries and Lava International, that have made inroads into the Rs 30,000-crore mobile phone market, traditionally dominated by multinationals such as Nokia, Samsung, LG and Motorola. Influential research firm IDC, in a report last week, said that domestic handset makers had capitalised on Nokia's misfortunes in India, with their share of the market doubling to 33% during the past six months. Micromax, which according to IDC is the largest domestic player with 4.1% market share, first launched phones with a 30-day battery backup.
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Data compiled by IDC showed that nearly 39% of all handsets sold in the country during January to June this year were dual-SIM phones, a segment that Nokia did not have a single model until recently.
Last week, ET first reported that private equity players Sequoia Capital, Sandstone Capital and Madison India Capital had jointly bought less than 10% stake from the four promoters of the company — Rajesh Agarwal, Rahul Sharma, Sumeet Kumar and Vikas Jain — for about Rs 200 core in what could be a pre-IPO placement. These firms have picked up just under 6% as per the DRHP, with Sequoia and Sandstone having 2.68% each and Madison India Capital getting just under 0.4%. At these valuations, this translates into a 15% gain for these PE players.
