"The company had mixed results in financial year 2011, however, in financial year 2012 it has performed better and that gives the investors as well as the promoters confidence to raise money from the public markets at higher valuations," another investment banker who is in talks with the company said. Earlier, the company had appointed JM Financial, Nomura, Citibank and Edelweiss to manage the issue.

In its previous draft prospectus filed with the capital markets regulator SEBI, the company's management had said that it would use about 50 percent of the IPO proceeds to build a handset making unit preferably in Sriperumbudur in Tamil Nadu, while a sizeable chunk of the remaining money will be used for marketing and advertising.

The company was started by Rajesh Agarwal, Rahul Sharma, Sumeet Kumar and Vikas Jain, in 2008. Since then Micromax has grown to be the third largest mobile handset maker by sales in the country.

According to data available with Cybermedia, for Jan-June 2012, in the Indian mobile handsets market, Nokia retained topped with 22.2 percent share, followed by Samsung with 13.0 percent and Micromax with 5.5 percent, in terms of sales.

Micromax has also ventured into making LED televisions and home theatre systems last year.

According to a CyberMedia Group's Voice & Data Analytics report for 2012, Micromax had revenues of Rs 1,978 crore for financial year 2011-12. The Indian mobile handset market saw a drop of 5 percent in revenues in financial year 2011-12 to Rs 31,215 crore from Rs 33,031 crore in the previous year.

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