Kerala-based mobile VAS firm MobME gets NSE approval for IPO

MobME Wireless Solutions Ltd, a Kerala-based mobile VAS firm, has received in-principle approval from the National Stock Exchange (NSE) to go for an initial public offering (IPO), according to a Press statement.

The company filed a draft red herring prospectus (DRHP) to list on the NSE's SME platform in February this year. It has offered 705,600 equity shares, comprising around 25 per cent stake, through the fresh issue.

According to sources, the firm is looking to raise  around Rs 25 crore ($4.6 million) from the IPO. Interestingly, MobME is one of the very few tech startups to skip the conventional route of fundraising from VC investors.

Kochi-based boutique corporate finance firm GMA Capital Partners is advising MobME for the proposed IPO. IDBI Capital is the book running lead manager.

Founded in 2006 at Trivandrum Technopark by Vijayakumar (CEO), Sony Joy and Vivek Steve Francis (COO), MobME is a mobile, media and entertainment company focusing on VAS for mobile phone users and carrier grade solutions for network operators.

MobME's key partners and clientele include Vodafone, Airtel, Aircel, Idea, Tata Indicom, BSNL, MTNL, NDTV, Network18 and Café Coffee Day, among others. The company also works with the state governments of Kerala, Goa and Nagaland, as well as central government departments such as Department of Science and Technology.

Last year, the firm announced a partnership with a commercial lender in India to deploy its digital signature technology Mobile Express, which will enable people to log in to their online banking portals, social media accounts, mailboxes and e-commerce websites with just their mobile numbers, thus avoiding the risk of passwords and user names being hacked and misused.

The company had consolidated revenues of Rs 22.8 crore for the six months ended September 2012.

MobME won't be the first VAS firm to go public. At least two such firms, which are large in comparison, are already listed. These are OnMobile Global and BK Modi-controlled Spice Group's S Mobility (which has a much bigger handset unit and a small services business).

(Edited by Sanghamitra Mandal)