Smartphone maker Micromax seeks to raise Rs3,160 cr through IPO

Micromax Informatics, India's second-largest smartphone manufacturer, plans to raise around $500 million (Rs3,162 crore) through a stock market listing at the beginning of the financial year, The Economic Times reported today.

The company was a relatively late entrant to the cellphone market in 2008, but due to its affordability and aggressive marketing, it quickly rocketed to popularity.

According to the report, citing unnamed sources, the company will sell a minority stake during the initial public offering of shares.

The report said Micromax has shortlisted Morgan Stanley and Goldman Sachs to manage the offering and expects 14 times the valuation of its operating profit.

In 2012, the smartphone firm had hired banks for an IPO and went on to raise $150 million (about Rs948 crore).

During the September quarter of last year, India's smartphone market grew at a rate of 64 per cent. While Samsung had 25 per cent of the market share, Micromax surprised many by grabbing a 20 per cent share.