DRAFT RED HERRING PROSPECTUS Please read Section 60B of the Companies Act, 1956 Dated February 7, 2013 Book Building Issue MOBME WIRELESS SOLUTIONS LIMITED Our Company was incorporated as MobME Wireless Solutions Private Limited on December 12, 2006. The name of our Company was changed to MobME Wireless Solutions Limited pursuant to a fresh certificate of incorporation dated January 15, 2013 issued by the Registrar of Companies, Kerala and Lakshadweep. For further details of incorporation, corporate structure, changes of name and in registered office of our Company, please see “History and Certain Corporate Matters” on page 83 of the Draft Red Herring Prospectus. Registered Office: 41/3197, 4th Floor, Bhagheeratha Square, Kacherippady, Kochi 682018; Tel: +91 484 6492646; Fax: +91 484 4019035; Contact Person: Ms. Smitha Varma, Company Secretary and Compliance Officer; Tel: +91 484 6492646; Fax: +91 484 4019035; E-mail: [email protected]; Website: www.mobme.in PROMOTERS OF OUR COMPANY : MR. SANJAY VIJAYAKUMAR, MR. SONY JOY, MR. VIVEK STEVE FRANCIS AND MR. JOSE THOMAS PATTARA PUBLIC ISSUE OF 705,600 EQUITY SHARES OF FACE VALUE OF ` 10 EACH FOR CASH AT A PRICE OF ` [] PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF ` [] PER EQUITY SHARE) AGGREGATING UPTO ` [] LACS (THE “ISSUE”) BY OUR COMPANY, OF WHICH 35,400 EQUITY SHARES OF `10 EACH WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKERS TO THE ISSUE (“MARKET MAKER RESERVATION PORTION”). THE ISSUE LESS THE MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 35,400 EQUITY SHARES OF `10 EACH IS HEREINAFTER REFERRED TO AS THE “NET ISSUE”. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 25% AND 23.75%, RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY. In case of revision in the Price Band, the Bidding/Issue Period shall be extended for three additional Working Days after such revision of the Price Band, subject to the Bidding/Issue Period not exceeding 10 Working Days. Any revision in the Price Band, and the revised Bidding/Issue Period, if applicable, shall be widely disseminated by notification to the National Stock Exchange of India Limited (“NSE”) and by issuing a press release and also by indicating the change on the website of the Book Running Lead Manager and at the terminals of the Syndicates. The Issue is being made through a Book Building Process in accordance with Chapter XB of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. RISKS IN RELATION TO THE FIRST ISSUE This being the first issue of Equity Shares of our Company, there has been no formal market for the Equity Shares of our Company. The face value of the Equity Shares is `10 and the Issue Price is [] times the face value. The Issue Price (as determined and justified by our Company and the book running lead manager (“BRLM”) as stated under the section titled “Basis for Issue Price” on page 45 of the Draft Red Herring Prospectus) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Shares of our Company or regarding the price at which the Equity Shares will be traded after listing. GENERAL RISKS Investment in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors must rely on their own examination of our Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of the Draft Red Herring Prospectus. Specific attention of the investors is invited to the section titled “Risk Factors” on page xi of the Draft Red Herring Prospectus. ISSUER’S ABSOLUTE RESPONSIBILITY Our Company having made all reasonable inquiries, accepts responsibility for and confirms that the Draft Red Herring Prospectus contains all information with regard to our Company and the Issue, which is material in the context of this Issue; that the information contained in the Draft Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect; that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes the Draft Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. IPO GRADING The Issue has been graded by [●] and has been assigned [●], indicating [●] through its letter dated [●]. For further details see “General Information” on page 15 of the Draft Red Herring Prospectus. LISTING The Equity Shares offered through the Draft Red Herring Prospectus are proposed to be listed on the SME Platform of NSE. In-principle approval from NSE, for listing the Equity Shares has been received pursuant to letter no. [] dated []. BOOK RUNNING LEAD MANAGER REGISTRAR TO THE ISSUE IDBI Capital Market Services Limited Bigshare Services Private Limited 3rd Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021 E/2, Ansa Industrial Estate, Sakivihar Road, Sakinaka, Andheri (East) ,Mumbai-72 Tel: +91 22 4322 1212 | Fax: +91 22 2285 0785 Tel: +91 22 404 30 200 | Fax: +91 22 2847 5207 Email: [email protected] Email: [email protected] Investor Grievance Email: [email protected] Investor Grievance ID: [email protected] Website: www.idbicapital.com Website: www.bigshareonline.com Contact Person: Mr. Keyur Desai Contact Person: Mr. Ashok Shetty SEBI Registration No.: INM000010866 SEBI Registration No.: INR000001385 BID/ISSUE PROGRAMME* BID/ISSUE OPENS ON: [], 2013** BID/ISSUE CLOSES ON: [], 2013** *The Company may, in consultation with the BRLM, consider participation by Anchor Investors. The anchor investors shall bid on the Anchor Investor Bidding Date. ** The Company may, in consultation with the BRLM, consider closing the Bid/Issue Period for QIBs, other than anchor investors, one Working Day prior to the Bid/Issue Closing Date. Contents SECTION I – GENERAL ........................................................................................................................................ i DEFINITIONS AND ABBREVIATIONS ..................................................................................................................... i CERTAIN CONVENTIONS, USE OF FINANCIAL, INDUSTRY AND MARKET DATA AND CURRENCY OF PRESENTATION .................................................................................................................................................. ix FORWARD-LOOKING STATEMENTS .................................................................................................................... x SECTION II - RISK FACTORS .............................................................................................................................. xi SECTION III – INTRODUCTION .......................................................................................................................... 1 SUMMARY OF INDUSTRY .................................................................................................................................... 1 SUMMARY OF BUSINESS ..................................................................................................................................... 4 SUMMARY FINANCIAL INFORMATION ............................................................................................................... 7 THE ISSUE .......................................................................................................................................................... 14 GENERAL INFORMATION .................................................................................................................................. 15 CAPITAL STRUCTURE ......................................................................................................................................... 24 OBJECTS OF THE ISSUE ...................................................................................................................................... 39 BASIS FOR ISSUE PRICE ..................................................................................................................................... 45 STATEMENT OF TAX BENEFITS .......................................................................................................................... 48 SECTION IV- ABOUT US .................................................................................................................................. 58 INDUSTRY OVERVIEW ....................................................................................................................................... 58 OUR BUSINESS .................................................................................................................................................. 67 REGULATIONS AND POLICIES IN INDIA ............................................................................................................. 76 HISTORY AND CERTAIN CORPORATE MATTERS ................................................................................................ 83 OUR