Maxx Mobile IPO : Plans to raise Rs 800 crore

by khalid on 07/02/2011 · 0 comments

Maxx Mobile Communications Limited is planning to raise Rs 800 crore through an initial public offering (IPO) in the next nine months. After Micromax, it’s another home-grown mobile handset player that is readying itself to hit the capital markets. Mumbai-based Maxx Mobile is an India-based manufacturer of mobile handsets, mobile phone batteries and mobile phone chargers.

The proceeds of the public issue are proposed to be utilized to setting up a handset manufacturing unit and starting the group’s retail venture. Maxx Retail will be a multi- brand store stocking mobile phones and mobile related offerings scheduled to open in Delhi in a 5,000-square-feet area. The retail store will stock competitor brands and sell phone connections and offer sales service.

In a growing trend, the Rs 30,000-crore a year mobile handset market is seeing a lot of domestic brands ramp up operations and raise capital as they plan to start manufacturing their own handsets. As of now, all Indian players import handsets from China and Taiwan because imports attract a negligible custom duty.

Maxx group clocked a turnover of Rs 1,200 till December last year and recently signed a seven-year brand endorsement deal with M S Dhoni for Rs 29 crore. It currently has about 2% share in a fragmented handset market with around 150 domestic and about 40 Chinese brands. Homegrown mobile brands now enjoy as much as 40% combined share in the Indian handset market according to market research firm IDC.

Book running lead managers : Enam Securities, Nomura and SBI Capitals.

Stay tuned to BelltheBull Blog for more news on Maxx Mobile IPO !

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