Mobile value added services firm One97 Communications Ltd has delayed its initial public offering (IPO) by nearly two weeks. The issue was slated to open on December 1 and it will now open on December 13. The decision to open the Rs 120-crore offering 12 days later on account of stock market volatility in the wake of the real estate bribes-for-loans scam.
"We took a call as the market conditions continued to remain volatile and our Book Running Lead Managers advised us to postpone the IPO by over a week," One97 Managing Director Vijay Shekhar Sharma told VCCircle. The issue will now open on December 13, 2010 and close for qualified institutional buyers on December 15 and others on December 16. IDFC Capital and Avendus Capital are the book running lead managers to the issue.
One97 has also made more than 2.5 times on its investment in Singapore-based tenCube, a mobile security services company whose product includes WaveSecure mobile security service. tenCube was acquired by McAfee, Inc for $9.5 million in July whereas One97 had invested in late December '09 in the firm. One97 made a little more than Rs 9 crore for its investment of Rs 3.37 crore in a period of seven months.
The mobile VAS firm has also started One97 Mobility Fund with SAIF Partners, under which it plans to invest $100 million in companies in the mobile services space India. One97 has also backed Oorja, a customer analytics firm; Paytm, a mobile commerce platform and Oc2ps, a social networking application.
Noida-based One97 is backed by private equity firm SAIF Partners and Intel Capital, the corporate venture capital arm of chipmaker Intel Corporation. SAIF Partners has a 36.7% stake in company while Intel Capital holds a 9.7% stake in the firm. Promoter Sharma holds a 38.52% stake.
IDFC Hybrid Infrastructure Portfolio and Reliance Capital have also picked up stake in One97 from early investor Peeyush Aggarwal in secondary transactions.
One97 ended FY10 with revenues of Rs 112 crore with a profit before tax (PBT) of Rs 26 crore. The numbers for the Q1FY11 stood at revenues of Rs 36 crore with a PBT of Rs 10 crore. One97 reported revenue of Rs 40.7 core in FY08, which doubled to Rs 81.4 crore in FY09.
One97 has seen the consumer services segment gain significant traction over the last few quarter with the number of clients now at 17.1 million. While the consumer services segment accounted for around 45% of the revenues, network services counts for a little more than 50% while enterprise segments counts for around 4% of the revenue pie.