Micromax gets SEBI approval for IPO

Market regulator SEBI has given nod to homegrown mobile handset maker Micromax to sell 10 per cent stake through an initial public offer.

According to SEBI data, the company had filed draft red herring prospectus on September 29 last year and was given the market regulator's approval on January 14 this year.

The company will be offering 2.15 crore shares and it may consider a discount of 10 per cent on the IPO issue price for retail investors.

The Delhi-based mobile handset maker may also consider participation by anchor investors.

The firm is raising funds for establishment of a new handset manufacturing plant, enhancement of the Micromax brand and investment in acquisitions and other strategic initiatives, and for general corporate purposes, it said in DRHP.

JM Financial, Citigroup, Edelweiss and Nomura are the book running lead managers for the issue.

The company at present exports handsets to countries like Nepal, Sri Lanka, Bangladesh and the Middle East countries. It is eyeing a revenue of Rs 2,500 crore this fiscal, as it expands its operations globally and strengthens its product portfolio.