The Hindu : Business : Spice Communications to tap market

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Thursday, Jun 21, 2007
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Spice Communications to tap market

Staff Reporter

NEW DELHI: Spice Communications on Wednesday said it would enter the capital market on June 25 to raise Rs. 520 crore by offloading 20 per cent of equity. It has fixed a price band of Rs. 41-46 per share of Rs. 10 and would issue around 11.3 crore shares through a 100 per cent book-building process.

According to Spice Managing Director Umang Das, the issue proceeds would be utilised to finance expansion plans in Punjab and Karnataka telecom circles, where the company is present. The company has over three-lakh subscribers in the two States.

The company also planned to launch new projects like national long distance and international long distance networks.

The company had already received a letter of intent (LoI) for ILD and NLD licences, he added.

Spice has recently concluded a pre-IPO placement of 2.48 crore shares at Rs. 45 per share, raising Rs. 112 crore. Post-IPO, stakes of promoters, B. K. Modi and Telekom Malaysia, would come down by 10 per cent each. B. K. Modi holds 51 per cent and Telekom Malaysia 49 per cent.

Enam Financial and UBS Securities are the book-running lead managers and Karvy is the registrar to the issue. For the six months ended December 2006, Spice Communication’s total revenue was Rs. 393.94 crore. It had posted a net loss of Rs. 41.80 crore after accounting for interest cost of Rs. 63.80 crore and depreciation and amortization charge of Rs. 70.90 crore

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