Micromax Informatics Limited is weighing various strategic options and is reportedly contemplating selling a minority stake in the company. According to the industry reports, Micromax is also open to an outright sale of its business and change of control of management. Further, the promoters of Micromax are seeking a valuation of $3-3.5 billion, which is around 2.5-2.9 times the company?s total income of $1.1 billion in 2014.
Micromax has appointed Goldman Sachs as an advisor on the matter.
Earlier, the company was planning to raise up to $500 million through an initial public offering (IPO) in India by diluting a minority stake. The company was then reported to be expecting an initial valuation of 14 times of its operating profit.
Currently, Micromax is owned by its four founder promoters with ownership of a little less than 80 per cent stake in the company. The private equity and financial investors own 15 per cent of the company, while the remaining stake is held by Sequoia Capital, Sandstone Capital, Madison India Capital and Spreadtrum Communications.
