• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Telekom Malaysia's stake will be at 39% post issue

TAPPING NEW LINES: Mr Dilip Modi (right), Chief Managing Director, Spice Communications Ltd, with Mr Umang Das, Joint Managing Director, at a press conference to announce the company's IPO in Mumbai on Tuesday. - Paul Noronha

Mumbai June 19

Spice Communications Ltd, a Noida-based cellular operator, is coming out with an IPO to raise around Rs 523 crore in the upper end of the price band of Rs 41-46 per share.

A major portion of the issue proceeds would be used towards repayment of debt, payment of license fee for national (NLD) and international long distance (ILD) communication segments and payment to vendors for network equipments.

At least 60 per cent of the net issue to the public shall be allotted on a proportionate basis to qualified institutional buyers (QIBs).

Further, 10 per cent of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders, while 30 per cent of the net issue to the public shall be available for allocation on a proportionate basis to retail bidders.

The equity shares are proposed to be listed on the Bombay Stock Exchange.

The issue will constitute 16.39 per cent of the fully diluted post-issue equity share capital of the company. In March last year, Telekom Malaysia has picked up a 49 per cent stake in Spice Communications Private Ltd for $178.85 million (Rs 733.28 crore).

Following the IPO, Telekom Malaysia's stake would come down to 39 per cent, Mr Dilip Modi, Managing Director and CEO, told press persons at a news conference today.

For the six months ended December 2006, the company had posted a net loss of Rs 41.81 crore on net revenues of Rs 394 crore.

The IPO opens on June 25 and closes on June 27.

Enam Financial Consultants and USB Securities Pvt Ltd are book running lead managers to the issue.

More Stories on : IPOs | Telecommunications

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Wealth Zone opens branch in Madurai

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line