News | Telecom | OnMobile eyes acquisitions post IPO

Most Commented

Environment Day Spl: How green is our 'gadget' life?

Enterprise Optimization Series

Bringing together the CIOs and Solution providers to explore new & unique ways of "Aligning IT investments with Business Benefits"

Know More..

SMB Central for SMBs

Communications, Networking Guide and resources on Telepresence and Video Conferencing and much more for SMBs of India.

Know More..

OnMobile eyes acquisitions post IPO

To raise Rs 500 crore for funding expansion and repaying loans

<b>R Jai Krishna</b>

Tuesday, January 22, 2008

Email This

Print This

Comments

RSS

NEW DELHI, INDIA: OnMobile Global Limited, a company engaged in offering telecom value-added-services to both Indian and global clients, is looking at acquiring companies in the VAS space, post its initial public offering.

"We will be allocating 25 per cent of the raised capital for acquiring companies in the mobile VAS space and exploring opportunities across the world," Mouli Raman, co-founder and CTO of OnMobile told CyberMedia News here.

OnMobile is aiming to raise Rs 500 crore from the capital market by diluting close to 19 per cent of its stake.

While 15 per cent will be fresh equity the rest four per cent is being offered on sale. The total raised capital out of the IPO, which is open at Rs 10 each for cash at a price determined through the book building process, will also fund its expansion activities and repaying loans.

OnMobile's Red Herring Prospectus (RHP) said on the company's plans to invest Rs 1800 million on new equipments and personnel at its offices in Bangalore, Mumbai and Delhi.

Another Rs 350 million will go on to repay of working capital loan taken from Kotak Mahindra bank by end-2008.

"The net proceeds of the issue, which shall accrue to close above Rs 100 crore will be used to corporate purposes towards acquisitions of companies in India abroad, expansion of existing or new office facilities and strategic initiatives," the RHP added.

The company had already acquired a France-based Mobile VAS company, Vox Mobili, through 90 per cent cash and 10 per cent equity transaction last year.

The future acquisition is also expected to be in the same area where it will strengthen OnMobile presence in US and European markets.

© CyberMedia News

Would you like to on this article?

Read Comments

Siva said on 1/27/2008 10:39:55 PM:
Good

to Siva

Name
Email
Your reply

Environment Day Spl: How green is our 'gadget' life?

Union Budget and great expectations

Govt to recall 4 directors from Satyam board

Mobile phone prices go up in Maharashtra

MphasiS appoints Ganesh Murthy as CFO

Budget: Watershed moment for Indian IT

	Innovation, Winning the future with ZTE
	Better Project Management using System Engineering
	Save Money, Save Power

	Single appliance for workload protection from Novell
	Barrier breaking technologies for your next level of business

	The Best opportunities coming up on CIOL
	Enterprise Optimization Series: Meet the Top CIOs
	Cut the Clutter with CIOL Custom Sites