Mumbai:Infosys Technologies Ltd-backed mobile value-added services (VAS) provider, OnMobile Global Ltd, has fixed the price of its initial public offering (IPO) at Rs440, somewhere at the middle of the Rs425-450 price band that it set for the offer.
At this price, the company’s market capitalization is pegged at $640 million (Rs2,522 crore). The public float, which closed on 29 January, was subscribed 10.95 times.
The Bangalore-based company is the first venture backed start-up in the eight-year-old mobile VAS industry to go for listing on the bourses and set the precedent for peers such as MCorp Global Ltd-backed Cellebrum.com Pvt Ltd and Bharti Telesoft Ltd (BTSL), which plan to go public in the next 12-18 months.
The issue, which hit the bourses days after the market meltdown on 21 January, was oversubscribed 17 times by institutional buyers and 1.3 times by retail investors. “We are happy with the response, especially from overseas investors,” says Arvind Rao, chief executive officer, OnMobile Global. “
At least 30 of the 50-odd qualified institutional buyers are overseas investors.” The IPO has attracted many foreign institutions, which could bring in more foreign investments into this space, says Vijay Shekhar Sharma, chief executive, One97 Communications (P) Ltd, another VAS player that plans to go public in two years’ time.
OnMobile plans to use the funds for acquisitions in the space. It has already acquired two companies in the past two years—Mumbai-based ITFinity Solutions Pvt Ltd and French firm Voxmobili SA.
OnMobile was initially focused on voice offerings such as manage voice platforms for telecom operators, but now it wants to expand into areas such as mobile advertising. The company, incorporated in 2000, has received two major rounds of funding since inception. This includes a $18 million round by US-based Argo Capital Management Ltd, HNQ Asia Pacific and Satwik Venture Capital Partners and a late stage investment of $27.8 million by Deutsche Bank AG, Goldman Sachs Group Inc. and Polygon Investment Partners Llp. in October 2006.