Intex, one of the top five smartphone brands in India, is planning to raise ₹700 crores through an IPO, according to a report published in Livemint. Citing unnamed people aware with developments, the company has been in talks with merchant bankers for last few months and may launch the offer at the end of current fiscal depending on market conditions.
They have recently hired a couple of domestic banks to manage the process and have begun working on the IPO, through which they intend to raise anywhere between 500-700 crore.
said one of the persons on conditions of anonymity.
He further added that company was planning to deploy capital to fund its smartphone business line and expand product portfolio across other categories. In addition to it, a considerable amount will also be spent on advertising ,marketing and for improving distribution capabilities.
Intex started off as a seller of computer peripherals in 1996 and now boasts of over 16 product categories across three major verticals namely mobile phones, consumer durables, and IT products.
However, it began witnessing a turnaround after it entered the mobile phone business in 2007. Even though it did not experience instant success from selling mobile phones, the segment now contributes the maximum share to its revenues.
The company basically focusses on the low to mid-range segment of mobile phones with no smartphone over the price of 15000 INR.
In fact, despite being on a constant decline, feature phones still constituted the highest selling category in mobile phones by Intex with company selling 14 million feature phones, and 8 million smartphones till December of the last fiscal.
Last year in the third quarter, Intex even managed to beat Micromax by a small margin in mobile phones, feature phones and smartphones combined.
However, things took a downturn in fourth quarter, when Lenovo replaced Intex to grab the third position (by number of smartphones shipment) with a market share of 11.6 % compared to 9.6% share of Intex.
In addition to constant competition from Samsung, Micromax, Lenovo, and Lava (other 4 companies in top 5 smartphone brands in India), Intex is also facing immense competition in low and mid range segment from the influx of plethora of Chinese smartphone makers in India.
Going with the 4G expansion in the country, Intex also plans to launch more 4G devices in coming quarters as currently it only has a limted range of LTE-based devices.