OnMobile IPO Oversubscribed 10.95 Times
By Nikhil Pahwa - Tue 29 Jan 2008 09:01 PM PST
In these volatile times of choppy global and local markets, the OnMobile IPO has been oversubscribed 10.95 times, perhaps helped by a timely research report on the listings prospects. The issue, a dilution of 18.99 percent of the companys post-issue paid up capital, has been priced between Rs. 425-450. Around 40.5 lakh of the 10.9 crore bids have been received at the cut-off price. However, as expected, retail sentiment was low and that segment was oversubscribed only 1.3 times. Remember, Infosys, which had incubated OnMobile and holds a minority stake in the company, had opposed the listing reportedly because of poor market conditions. However, the Qualified Institutional Buyer segment was subscribed 17.16 times. At cut-off, the company will raise around Rs. 450 crores from the IPO. Interestingly, the company is expected to deploy 25 percent of its equity to acquisitions and global expansion. Lots of easy pickings? OnMobile is India’s largest mobile value-added-services company, with a 2007 revenues at Rs. 1329.7 million, profit after tax of Rs. 337.2 Million.
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