Spice fixes IPO price band at Rs 41-46

Cellular operator Spice Communications Ltd said on 19 June it has fixed the price band of its proposed public issue between Rs41 and Rs46 an equity share of Rs10 each.

“We have recently concluded a pre-IPO placement of 24,837,889 shares at Rs45 per share, thereby raising about Rs112 crore. A clutch of investors led by Lehman Brothers and Sinnaker Investments have picked up a small stake in Spice Telecom,” company chairman and managing director Dilip Modi told reporters at a press conference here.

Following the IPO, the stakes of the both the promoters, B K Modi and Telekom Malaysia, would come down by 10% each.

At present, B K Modi holds 51% and Telekom Malaysia, the remaining 49%.
Post-IPO, Modi will hold 41% while Telekom Malaysia, 39%, with the public holding the remaining 20%.

“We are the second largest operator in Punjab with 1.91 million subscribers and the fifth largest operator in Karnataka, with 0.82 million subscribers,” Modi said.

The company intends to consolidate and boost its presence in both the markets by expanding its coverage with a view to increase its marketshare, he said.

“We also plan to work with our roaming partners to improve and expand our coverage and to provide consistent products and services to our subscribers,” he added.