A bold move indeed by mobile Value Added Services company Planet41 to seek to raise Rs. 50 crore from the capital markets in India; the company founded by brothers Somil and Sangam Gupta has filed its Draft Red Herring Prospectus with the Indian stock market regulator SEBI. Sangam Gupta, 24, is also the CEO of game development company Trine Entertainment Limited. By raising funds, it appears the company is trying to raise funds to address the gap between itself and the larger players in the mobile value added services ecosystem. Sample this: Planet41 reported sales of Rs. 1.1 crore and an earnings per share of Rs. 0.75 for the nine months ended 31st December 2009, compared with market leader OnMobile Global, which reported sales of Rs. 363.9 crore and an EPS of Rs. 12.2 for the same period. Planet41 is the second mobile VAS company to file its DRHP in recent times. There's another one on its way. Download: DRHP What Will Planet41 Use The Money Raised For? While the issue price and the total amount of money being raised hasn't yet been disclosed, - Rs. 6.3 crore will be used to fund raised for setting up corporate and branch offices. - Rs. 11.82 crore for purchase of equipments and hardware - An undisclosed amount will be used for strategic acquisitions in Information, communication and education sectors, mobile technology, content development or multimedia/graphic design space. The investments being made: - 3G R&D Facility: The company is in the process of…
