Kerala based mobile VAS company, MobME has filed its Draft Red Herring Prospectus for an IPO with the NSE SME Stock exchange to raise a capital close to Rs. 25 crores through 705,600 shares of face value of Rs.10.
The object of raising this capital is to implement mobile digital signature pilot project in Kerala. The capital will be largely spent around the license fee to Valimo, procurement of Crypto SIM cards from Gemalto Digital Security Pvt. Ltd., 4000 mobile phones and other related expenses for the project. Although MobME is raising only Rs.25 crores, they plan to raise more on success of its pilot project.
MobME is a telecom solutions company specializing in providing products and services using mobile communications technology. They offer their products and services to TSPs, State Governments, enterprises and financial institutions across India. Their products and services are classified into (i) VAS segment providing solutions over text, voice and data to TSPs and their subscribers; and (ii) Enterprise Solution segment. They implement m-governance projects for the states of Kerala, Goa and Nagaland. They work very closely with the state government of Kerala with involvement in over 90 of their state departments.
Subsidiaries and Group Companies
MobME also has two subsidiaries Getz Shoppe & Exim Private Limited and Forward Media Private Limited. Getz Shoppe & Exim Private Limited operates in the trading of consumer durable goods.
Forward Media Private Limited operates in the print and digital media industry. Shareholdings in Forward Media Pvt Ltd is as follows:
Financials of Forward Media Private Ltd:
Shareholdings in Getz Shoppe & Exim Private Limited
Financials:
There are 43 companies listed under their group of companies including Torque Technology Solutions Private Limited in which Union Defence Minister A.K.Antony’s son, Anil Antony was one of the founding members (reported the Hindu). Of the 43 companies, 33 of them including Torque Technology Solutions Pvt Ltd have been reporting loss in the last three financial years. Promoters of MobME hold 66% of Red Splash Media Solutions Pvt Ltd, another group company.
MobSHARE Mobile Systems India Private Limited is another group company that has been declared as a company with similar or related business interest in MobME’s DRHP. This may lead future conflict of interest. Sanjay Vijayakumar, promoter and CEO of MobME holds 50% stake in this company.
Shareholdings and Financials of MobSHARE Mobile Systems India Pvt Ltd:
Financials of MobME:
Net Profit/loss
|
March 31, 2009
|
March 31, 2010
|
March 31, 2011
|
March 31, 2012
|
September 30, 2012
|
Net Profit after Tax
|
(0.03)
|
0.76
|
6.75
|
5.59
|
2.13
|
Consolidated Net Profit/Loss in Crores
Net Profit/Loss
|
March 31, 2012
|
September 30, 2012
|
Net Profit after Tax
|
5.13
|
1.94
|
Segment
|
March 31, 2009
|
March 31, 2010
|
March 31, 2011
|
March 31, 2012
|
September 30, 2012
|
VAS
|
0.82
|
2.67
|
16.17
|
19.13
|
9.62
|
Enterprise
|
0.50
|
1.06
|
3.14
|
3.39
|
0.87
|
Shareholders & Directors
Mr. George Brody – Chairman, Non-Executive and Independent Director
Mr. Jose Thomas Pattara – Non-Executive and NonIndependent Director
Mr. Sanjay Vijayakumar – Executive and NonIndependent Director
Mr. Sony Joy – Executive and NonIndependent Director
Mr. Aynampudi Subbarao – Non-Executive and Independent Director
Equity held by the promoters as of ten days and two years prior to the Draft Red Herring Prospectus:
As of date, the promoters hold an aggregate of 73.63 % of the Company’s issued and paid-up equity share capital.