Japanese mobile telecom firm SoftBank Corp is reportedly in discussions to buy a 20 percent stake in handset maker Micromax Informatics for up to $1 billion. The investment would likely value Micromax at around $5 billion.
Earlier, Micromax had filed for a public listing in 2010, but shelved those plans citing poor market conditions. At present, Micromax?s key investors include private equity firms Sequoia Capital and TA Associates. The company entered the Indian mobile handset market in 2008 and is credited with fuelling the demand for smartphones in the country.
Meanwhile, SoftBank is planning to invest about $10 billion in the country’s e-commerce. The likely investment into Micromax comes in the view of the fact that affordable smartphones and internet connections are driving the country?s e-commerce boom.
