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Spice Communications to debut on BSE

Wednesday, July 18, 2007

Spice Communications will debut on BSE on Wednesday, 19 July 2007. The company's shares will not be listed on the National Stock Exchange (NSE), where listing of companies with negative networth is not permitted.

Spice Communications had raised Rs 528 crore in an initial public offering (IPO), which closed on 27 June 2007. The IPO was oversubscribed more than 37 times.

The IPO was priced at the top end of the Rs 41-46 price band.

The issue comprised 16.39% of Spice Communications’ fully diluted post-issue share capital.

Post issue, Malaysia’s official service provider Telekom Malaysia (TM) holds 39%, while industrialist and Modi group Chairman B K Modi owns the remaining 41% stake in Spice Communications. The public holding has increased to around 20%.

The company had earlier raised Rs 112 crore through a pre-IPO placement of 2.48 crore shares at Rs 45 each.

Spice Communications will use around 50% of the total proceeds to retire part of its Rs 1,000 crore debt, while the remaining would be used for expansion plans.

The company’s expansion plans include foraying into national long distance (NLD) and international long distance (ILD) services in the country.

Posted by FR at 5:44 PM  

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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.