×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Spice to offload 20%; IPO opens 25 June

Spice to offload 20%; IPO opens 25 June
Comment E-mail Print Share
First Published: Wed, Jun 20 2007. 06 37 PM IST
Updated: Wed, Jun 20 2007. 06 37 PM IST
PTI
New Delhi: Cellular operator Spice Communications plans to enter the capital market on 25 June to raise up to Rs520 crore by offloading 20% of equity.
The company announced a price band of Rs41-46 per share of Rs 10 each for its offer and will issue 113 million shares through a 100% book-building process. The issue will be open between 25-27 June, Spice managing director Umang Das said here.
The IPO proceeds are focused on expansion in Punjab and Karnataka, new projects like NLD and ILD and partially return the loan and funding growth, Das said.
The company has already received a Letter of Intent (LoI) for ILD and NLD licences.
The company has three lakh customers in Punjab and Karnataka and has concluded a pre-IPO placement of 25 million shares at Rs45 apiece, raising Rs112 crore.
Investors led by Lehman Brothers and Sinnaker Investments have picked up a small stake in the company.
Post-IPO, stakes of promoters, B K Modi and Telekom Malaysia, would come down by 10% each. B K Modi holds 51% and Telekom Malaysia 49%.
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 Rs393.94 crore.
It has an earning of Rs93.43 crore before interest, tax and amortization. It had posted a net loss of Rs41.8 crore after accounting for interest cost of Rs63.8 crore and depreciation and amortization charge of Rs70.9 crore.
Comment E-mail Print Share
First Published: Wed, Jun 20 2007. 06 37 PM IST