Micromax sells 10% stake to pvt equity

Micromax sells 10% stake to pvt equity

New Delhi: Mobile phone handset maker Micromax Ltd sold a 10% stake in the company to three private equity firms for about 200 crore, Business Director Vikas Jain told Reuters.

Sequoia Capital and Sandstone Capital LLC will take minority stakes in the company through the latest cash infusion. This is in addition to TA Associates’ $45 million investment in Micromax in late 2009.

Sequoia Capital’s managing director Mohit Bhatnagar will sit on Micromax’s board, the company said in a statement.

Madison Capital also participated in the latest investment round, the company said.

Micromax, which entered the Indian mobile handset market in 2008, has quickly become a leading player with its cheap models, giving competition to leading player Nokia and South Korea’s Samsung SDI.

Last month, sources said Micromax shortlisted Citigroup, Edelweiss and JM Financial for an initial public offering to raise as much as $150 million.