Domestic mobile handsets maker Micromax is tapping the capital market for raising funds and today filed the draft prospectus with the Securities and Exchange Board of India (Sebi).
The company will be offering 2.15 crore shares and it may consider a discount of 10 per cent on the IPO issue price for retail investors, merchant banking sources told PTI.
The Delhi-based mobile handset maker may also consider participation by anchor investors, details available with the draft red herring prospectus (DRHP) showed.
The firm is raising funds for establishment of a new handset manufacturing plant, enhancement of the Micromax brand and investment in acquisitions and other strategic initiatives and for general corporate purposes, it said in DRHP.
JM Financial, Citigroup, Edelweiss and Nomura are the book running lead managers to the issue.
Micromax is the largest Indian domestic mobile handsets company in terms of units shipped during the quarter ended March 2010, and the third largest mobile handset seller in India as at March 31, 2010.