Micromax plans $500 million IPO next fiscal

Indian smartphone maker Micromax is planning to raise nearly $500 million through an initial public offering (IPO).

The Economic Times newspaper reported on Saturday that the IPO may hit the market during the next financial year.

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Micromax is hitting the market at a time when its main rival Samsung is struggling in the Indian phone market.

Samsung has 24 percent share in smartphone market against Micromax’s 20 percent in Q3 2014, said IDC in November. Vendors shipped 23.3 million smartphones in Q3 2014 compared to 12.8 million units in the same period of 2013.

Micromax launches Canvas Selfie
Earlier, India’s second-largest smartphone maker had dropped its plans for IPO due to weak market conditions.

Micromax will sell a minority stake in its initial public offering of shares. Micromax is backed by private equity firms TA Associates and Sequoia Capital.

The overall mobile phone market rose 15 percent sequentially and 9 percent annually to 72.5 million units in Q3 2014.

The share of smartphone market in the overall mobile phone market reached 32 percent in Q3 2014 against over 19 percent in the same period a year ago.

Baburajan K
editor@gizmolead.com

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