MobME Wireless Solutions will dilute 25 per cent of its equity when it goes public next month. The telecom value-added services company, which has announced its IPO plans recently, will list its shares on SME Exchange (small and medium exchange).
The company, with a market cap of Rs 100 crore, will file the draft red-herring prospectus by the month-end.
“The IPO will begin three weeks after that,” Sanjay Vijayakumar, the Chief Executive Officer of MobME, has said. IDBI Capital Market Service is the merchant banker for the issue.
When it lists shares on an exchange, it will be the first for a campus-start-up, set up at Technopark Technology Incubator in Kerala seven years ago. It employs 150 people, with top telecom firms as its clients.
Providing exit way
Sanjay, however, refuses to divulge details on the turnover of the company or the size of the IPO, citing regulatory norms. He, however, hinted that the purpose of going public was to give an option for the external investors a way to exit.
“Post listing, the promoters will continue to hold majority shareholding,” he said.
Digital signature
Replying to a query whether the company had not considered an option to invite a fresh set of investors, he said the risk appetite of the public was much higher than the investment firms.
The company would soon launch digital signature, providing an authentication solution that facilitates electronic transactions. “Unlike in the systems that are in vogue, this solution carries the signature on the sim card, giving the users the much needed mobility and convenience,” he said.
“No e-governance transaction takes off with mobile digital signature. The signature could be secured a pin number,” he said.