One97 Communications IPO Review

 

One97 Communications IPO Review

One97 Communications Limited was planning to raise Rs.120 crores through initial public offerings (IPO). The IPO was plan to hit the market on 1st December 2010. However, because of the volatile market conditions it has postponed its IPO for 3 more weeks.

Let us understand what is the underlying core business of this company? Well, this company basically makes softwares for mobile phones. Basically it develops Value Added services softwares for the mobile phones.

As the penetration of mobile phones and telecomm services is increasing day by day, the Value added services is also increasing and that’s why there is a huge space for mobile software makers.

The company provides networking solution services to 12 telecom operators in India, and one each in Afghanistan, Nigeria and Bangladesh.

The company offers services in categories like Network VAS, Consumer VAS and Enterprise VAS.

I will personally give this IPO 2 out of 5 stars. This is because it has deferred its IPO in the volatile market conditions. This shows that the company management is not very much confident about its listing.

In my opinion, don’t go for this IPO as there are lots of PSU IPOs and FPOs in the queue in the next fiscal.