OnMobile Rises on Market Debut
OnMobile, which listed the stock at 440 Indian Rupees ($11.02), issued 10.9 million shares at a price range of INR425 to INR450 in a book building process that was oversubscribed 11 times. (See OnMobile Opens IPO.)
The stock traded nearly 19 percent percent higher on the Bombay Stock Exchange, closing at INR521.90. It had hit INR579.90 earlier in the day. Shares on the National Stock Exchange rose nearly 18 percent to INR518.15, off the day’s high of INR579.
Telecom-related stocks have become a hot commodity on the Indian exchanges, as service providers add subscribers at a rapid pace. OnMobile is the country's largest provider of applications such as voice SMS, phone backup, mobile commerce, music, ringback tones, and mobile marketing, and its customers include India's major mobile operators in addition to media groups like AOL India, MTV, ESPN, and Disney.
Of the 10.9 million shares issued, 8.6 million were new shares issued by OnMobile, raising around INR3.78 billion ($95 million) for the company's coffers.
The company plans to use the proceeds of the IPO to expand its offices in Bangalore, Mumbai, and New Delhi and repay loans. It's also looking at acquisitions to expand its international presence beyond its existing operations in Australia, France, Indonesia, and Singapore.
The company recently acquired French software firm Voxmobili. (See India's OnMobile Buys Voxmobili .) — Nicole Willing, Reporter, Light Reading