Micromax set to raise around $500 million through an initial public offering

Gurgaon-based Micromax Informatics Limited is reportedly planning to raise up to $500 million through an initial public offering (IPO) in India in April 2015. The company is planning to dilute a minority stake through a public listing. To this end, the company has shortlisted Morgan Stanley and Goldman Sachs for managing the IPO. Micromax is expecting an initial valuation of 14 times of its operating profit.

Earlier in 2011, Micromax had got regulatory approval to raise Rs 4.66 billion by selling its 21.5 billion shares. However, the company later shelved its IPO plans citing the volatile market conditions.

The major investors in Micromax include TA Associates with 15 per cent shares, Sequoia Capital and Sandstone Capital with 2.68 per cent each, and Madison India Capital with under 0.4 per cent share, while the promoters of the company own around 80 per cent of its shares.