Financial Daily from THE HINDU group of publications
Saturday, May 06, 2006
Financial Daily from THE HINDU group of publications Saturday, May 06, 2006 |
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Info-Tech - IPOs Spice Telecom may go for IPO this year Our Bureau
Tone loud and clear Market is buoyant, our stocks are well valued. Telekom Malaysia-backed loan used for debt revamp. Court cases have been settled, more investments on the anvil.
MR B.K.MODI
Bangalore , May 5 Spice Telecom may opt for an IPO this year in a bid to fund its capital expenditure. "We might go in for a public issue soon," hinted Dr B.K. Modi, Chairman, MCorp Global, the entity that owns 51 per cent stake in Spice Telecom. The rest is owned by Telekom Malaysia, which bought the stake from Deutsche Bank and Ashmore fund recently for around $179 million. "The market is good, and our stocks are well-valued. The board will take a call," he said. Mr Modi is likely to dilute his stake further in the process. He said: "Every investor looks for an exit." He, however refused to divulge details. Spice Telecom operates in two circles — Karnataka and Punjab -- with a total subscriber base of around 1.9 million.
TURNAROUND MODE
Spice Telecom is in a turnaround mode. The Telekom Malaysia-backed $265 million loan from Development Bank of Singapore (DBS) was used for debt restructuring. "Defaults are out. Court cases have been settled," he said. Announcing an investment of Rs 2,000 crore by 2007, he said it would be used for upgrading network infrastructure, training manpower and brand building in two states. "We are looking to regain leading position in Karnataka again," said Mr Modi.
BIG PLANS
Spice also announced that pilots for Mobile TV (a service wherein TV channels and video are broadcast to mobile screens) had begun in Delhi. "We have begun trials and will soon offer it to our subscribers for free," declared Mr Modi. The company also plans to enter film production and distribution business. Plans to enter handset retail business are also on the anvil. "Stores that sell multi-brand handsets will be set up in three months in Bangalore," said Mr Modi. Spice's handset manufacturing plant in Baddi, Himachal Pradesh, will begin production in September. Three more models will be launched soon, he informed. Currently, 50,000 units imported from Taiwan, are being sold in India per month under the Spice brand.
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