Spice IPO gets over subscribed 37 times

The initial public offer of mobile service provider Spice Communications has got subscribed over 37 times on its last day on Wednesday.

The IPO received bids for 425.38 crore shares against 11.3 crore shares on offer, latest data available on the stock exchanges show.

The QIB portion had received subscriptions of more than 5 times the reserved shares with major demand coming from foreign institutional investors till yesterday.

Spice Communications expects to raise up to Rs 520 crore through its maiden public offering at a price band of Rs 41- 46 per share.

The company is expected to use a major portion of the issue proceeds to get national and international long distance licences. The company, in which Telekom Malaysia holds 49 per cent stake, has received a non-exclusive letter of intent for providing STD and ISD services.

A part of the proceeds would also be used for repayment of debt and payment to vendors for network equipment.