OnMobile to raise Rs 350-400 cr via IPO

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New Delhi, Jan 22 (UNI) Telecommunications value added services provider OnMobile Global Ltd today said it will raise Rs 350-400 crore from an initial public offering (IPO) of over 1.09 crore equity shares of Rs 10 each.

The price band of the issue, which opens on January 24 and closes on January 29, has been fixed between Rs 425 and Rs 450 per share, company Senior Manager (Finance) Praveen Kumar K J told reporters here.

The company plans to use the issue proceeds in for purchasing equipment for offices at Bangalore, Mumbai and Delhi, meeting the working capital requirements, repayment of loan and to fund expenditures for general corporate purposes, he added.

There will be a fresh issue of 86,13,356 equity shares and an offer sale for 22,87,189 shares by Onmobile Systems Inc.

The issue, to be determined through a book building process, would constitute 18.99 per cent of the fully diluted post issue paid-up capital of the company.

At least 60 per cent of the issue will be allocated to Qualified Institutiona Buyer, out of which five per cent shall be allocated to mutual funds only, Mr Praveen Kumar said.

Not less than ten per cent of the issue will be available for Non Institutional Bidders and not less than 30 per cent for allocation to Retail Individual Bidders, he added.

The book running lead managers to the issue are Deutsche Equities India Private Ltd and ICICI Securities Ltd.

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