OnMobile IPO opens on Jan 24, price band Rs 425-450

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OnMobile Global, a leading provider of telecommunications value added software products and services in India with an expanding international presence, will enter the capital market with an initial public offering of 10,900,545 equity shares of Rs 10 each for cash at a price to determined through a book building process. The issue will open for subscription between January 24 and January 29, 2008. The price band has been fixed between Rs 425 and Rs 450 per equity share.

The company is proposing a fresh issue of 8,613,356 equity shares and an offer for sale of 2,287,189 equity shares by Onmobile Systems Inc. The issue would constitute 18.99% of the fully diluted post issue paid-up capital of the company.

The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange of India. The issue has been graded above average by CRISIL and has been assigned a grade of 4/5.

At least 60% of the issue will be allocated on a proportionate basis to qualified institutional buyers, out 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 objects of the issue are to purchase equipment for the company's offices at Bangalore, Mumbai and Delhi and various customer sites, to meet working capital requirements, repayment of loan and to fund expenditures for general corporate purposes.

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

Incorporated in India on September 27, 2000, by OMSI, which was an incubated startup of Infosys Technologies, the Bangalore-based OnMobile Global developed telecommunication software applications for the mobile telecommunications industry worldwide. Its products are targeted at end-user telecommunications subscribers with an increasing focus on capitalising on the convergence between wireless and wireline telecommunications services, media content distribution, internet, mobile marketing and mobile commerce.

It has a broad range of applications that are delivered by its carrier customers to their end-user subscribers. These products include ringback tones, voice portals, ringtone downloads, subscription manager, contests, music messaging, on-device client software, mobile radio, dynamic voicemail, voice short messaging service and missed call alerts which enable subscribers to personalise their mobile phones and thereby enhance user experience.