Kerala based mobile VAS company MobME Wireless has received an in-principal approval from the National Stock Exchange (NSE) for its proposed Initial public offering (IPO).
The company informed that NSE approved its offering on April 2, 2013 and this approval will be valid for the next 12 months, following which the company will have to re-draft its draft red herring prospectus (DRHP) for an IPO.
In December 2012, MobME has stated plans of raising capital through an Initial Public Offering (IPO) rather than opting for venture capital funding. In February 2013, it had filed its draft red herring prospectus with the NSE’s Emerge SME platform to raise around Rs 25 crore, by offering 705,600 equity shares for the face value of Rs 10.
MobME CEO Sanjay Vijayakumar had told Medianama that the company plans to use the capital raised to implement its digital signature pilot projects in Kerala, which is expected to be rolled out in the next 12 months. He also mentioned that they are planning to shift from the NSE Emerge platform to the main stock exchange in a year or two.
Founded in December 2006, MobME offers telecom products and services to operators, brands and the government. This includes network solutions for telcos to manage SMSC,USSD, IVR and Outbound Dialler (OBD) services, value added services for telcos and brands and hosted enterprise solutions across SMS, voice and data platforms for Brands, Businesses, Banks and Government Institutions.
In November 2012, the company has inked agreements with Valimo, a mobile authentication and digital signature solution provider and Gemalto, a digital security company, to launch a mobile digital signature solution called Mobile Express. MobME was using Valimo’s Mobile ID solution and Gemalto’s UpTeq PKI (Public Key Infrastructure) SIM cards to develop a secure authentication channel which enables legally binding digital signatures on transactions directly from mobile phones.
For the fiscal ending 2012, MobME had posted total revenue of Rs 23.10 crore, a significant increase from Rs 3.46 crore revenue reported in the period ending March 31, 2008. It had reported net profit of 5.60 crore for the year ending March 31, 2012, up from Rs 1.06 crore profit reported in the period ending March 31, 2008.