The Kerala-based mobile value-added services (VAS) provider has floated its draft red herring prospectus on the National Stock Exchanges (NSE) SME listings. MobMe is offering 7,05,600 equity shares with a face value of R10. Through the new issue, about 25% equity is expected to be sold.
We plan to start trading by the end of next month, said MobMe co-founder and CEO Sanjay Vijayakumar.
MobMe is the first student-run start-up to take the IPO route, and the third mobile VAS firm to do so. MobMe is a mobile, media and entertainment company, focusing on VAS for mobile phone users and carrier grade solutions for network operators.
Two months ago, it converted an outstanding loan of R2 crore taken from Kerala government's Technology Development Board (TDB), at R180 a share. TDB now holds 5.5% stake in MobMe. Kochi-based boutique corporate finance firm GMA Capital Partners is the counsel for the proposed IPO and IDBI Capital is the book-running lead manager.