Thebullishtrends: OnMobile Global (India) involves in to develop telecommunications software palforms and applications for the mobile telecommunications industry the company enters into capital market with an initial public offer of over 1.09 crore equity shares with price band of Rs.425-450 per share the issue opens on January 24th the IPO will close on 29th January'08.OnMobile was started by Infosys Technologies which holds a 12% sake in OnMobile. OnMobile plans to use the issue proceeds in for purchasing equipment for offices at Bangalore, Delhi and Mumbai, to meet the working capital requirements,repayment,of loan and to fund expenditure for general purposes. The company plans to build some more R&D centers and hire more engineers to expand its operations. OnMobile is planning to for inorganic growth acquisitions as it is opening an office in London and are planning to open an office in the US.
OnMobile earned 67% of its revenue from its ringback tones and music related services in the financial services in the financial year March'07. The Indian telecom industry is witnessing a robust growth with the more mobile subscriber base increasing from 13 mn in the year 2003 to 230 mn in December'07. Gartner reported the mobile subscriber base to increase by a CAGR of 27% to 462mn by 2011.
OnMobile Global is leading provider of telecom value added services (VAS) in India and is expanding its international presence. OnMobile Global offers value added services such as ring back tones, voice portals,ringtone downloads to its carrier operators and also offers information and entertainment solutions, interactive media solutions,m-commerce solutions. OnMobile is having strong customer base like Bharti Airtel,BSNL,Vodafone,Tata Teleservices,Reliance Communicatons and Idea Cellular it also offers services to international operators such as Sheba Telecom(Bangladesh),Maxis Malaysia,Indosat(Indonesia).
Even operating profit margins were declined over 2 years the company still able to maintain at above 40%. Though the price band Rs.425-450 looks steeply priced,though the upper price band of Rs. 450 it offered EPS Rs.10 for Sept'07 and Rs.15 for the year FE10.
OnMobile Global will benefited due to the roubust growth in Indian telecom, and the company can maintain higher operating profit margins in the coming years. One can expect decent listing gains by listing of company shares in the exchanges. Apply for Listing gains
