OnMobile to raise over Rs 450cr through IPOBS Reporter / Mumbai January 17, 2008OnMobile Global, plans to enter the capital market with an initial public offer (IPO) of 1.09 crore equity shares of Rs 10 each through a book building process in the price band of Rs 425-Rs 450 per share. The issue opens on January 24 and closes on January 29.OnMobile a telecommunications value added software products and services, plans to use the funds for expanding its research and development team, foraying into international markets, merger and acquisition and to meet working capital requirements, repayment of loan and to fund expenditure for general corporate purposes."We have one of the biggest R&D teams with 260 people in this sector. We plan to double it in the next year or so," said Arvind Rao, CEO & co-founder, OnMobile. The company will soon open office in London targeting the European market as well as in the US.M&A will also be on the radar of the company. "We have acquired two companies in the past. While acquisition is on card, the focus will be on acquiring products and assets that have value rather then services firms. Secondly, the technology needs to have a global appeal," he further added.The issue would constitute 18.99% of fully diluted post issue paid-up capital of the company. The equity shares are proposed to be listed on BSE and NSE.At least 60% of the issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), of which 5% shall be available for allocation on a proportionate basis to mutual funds only. Further, not less than 10% of the issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the issue will be available for allocation on a proportionate basis to retail individual bidders.The company
