Micromax Revives IPO Plans: Report

The phone company backed by private equity players Sequoia Capital, Sandstone Capital and Madison India Capital is had earlier withdrawn its Rs 426 cr IPO plans citing weakness in the market.
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micromax_new_logo_thumb.jpgHomegrown phone maker Micromax is planning to raise funds from the public markets through an initial public offering, according to a new report.

The phone company backed by private equity players Sequoia Capital, Sandstone Capital and Madison India Capital is had earlier withdrawn its Rs 426 cr IPO plans citing weakness in the market.

In 2011, the Delhi based company had filed for an IPO to facilitate a partial exit for the PE companies that had bought 6% in the company for Rs 200 cr.

Private equity backers of Micromax will soon appoint investment bankers to start the IPO process, reports The Economic Times.

There seems to be a new found confidence of sorts around the phone company which has shown some great numbers in the last few quarters with runaway successes like the Micromax Canvas A110. It has also emerged as a succesful challenger in the growing Indian tablet market.

According to a report by Cyber Media Research in January, Samsung had a 23.9% share in the tablet market followed by Micromax with 15.3% market share. Datawind had a 12.3% market share. The tablet market is expected to grow at 100% in 2013. An estimated 3 million units were sold in 2012.

In 2012, according to IDC, the firm which tracks mobile phone shipments, nearly 218 million mobile phones were sold in India in 2012 with the demand for smart phones driving the growth.

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