Micromax IPO : Planning an IPO soon

by khalid on 02/07/2010 · 1 comment

Gurgaon based mobile handset company Micromax is planning to launche an IPO soon. The company is largest domestic mobile handset player and is already in talk to several banks regarding the debut issue of the company. Citigroup Global Markets, Edelweiss and JP Morgan may be the lead bankers to the public offering. Micromax may be eyeing a mop-up of around Rs 600-800 crore as it looks to expand its presence throughout the emerging markets.

Micromax, which started as a telecom equipment distributor in 2000, has registered a phenomenal growth in the burgeoning domestic mobile market. The company entered the mobile handset market in 2008 and its current market share stands at 4.1% market share by revenue. After the Micromax, Spice and Karbonn had a share of 3.9% and 3% in FY10.

Mobile phones sale stood at 108 million across the country in 2009-10, amounting to Rs 27,000 crore in sales revenues up from Rs 25,910 crore in the previous year. Micromax has become the third largest handset provider in India, as measured by volume, just below Nokia and Samsung.

The Indian wireless market is one of the fastest growing in the world with 1 to 1.5 crore new mobile subscribers per month. The number of subscribers has grown from approximately 10 crore in 2006, to more than 40 crore today and is expected to grow to over 80 crore over the next three years.

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