The telecom services and value added service provider OnMobile Global is the latest company coming out with its proposed IPO. OnMobile Global basically is a value added service provider in the telecom sector.It provides software and hardware interfaces to several top notch telecom and equipment manufacturing companies.

The company was established in the year 2000.Currently they are engaged in testing,developing and launching innovative applications.Its client tele include Bharti Airtel,BSNL,TATA Teleservices Ltd,RCom,Vodafone,Nokia,ESPN Software India Pvt etc.

The issue is opening on Jan 24th and will be over by Jan 29th 2008.The price band has been decided at Rs 425-450 per equity share.At the lower end the company will accumulate Rs 463 crores and at the upper band it can generate 490 crores.The main of the IPO is to fund the future expansion and repay loans.

The value added services in India fall under 2 categories like person to person(P2P) and non P2P services.It falls under the non P2P category.The market size of this segment is around Rs 3100 crores in FY08.

The Financial position of the company looks extremely good with 100% growth in a compunded basis in the last 4 years.The profit margins has remained better than its peer IT and Telecom companies in the past.And as we see that it has a nice base of customers in India itself so the rupee appreciation is not a big issue for the company.In the 6 month ended Sep 07 its sales and profit doubled from the year ago period.

The company also doesn’t have any listed competitor as such other than Tanla solutions which provides content aggregation services to mobile operators.The company is in the growth phase and with ever increasing demand of new mobile connections every month and rising demand for 3G services the company is expected to perform better than its past.

Now investors with a long term horizon of around 1-2 year can subscribe to the issue.The issue has also got a crisil rating of 4 means above average fundamentals for the company.So time to consider another IPO in the market.

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