20 Jun 07 Spice Communications Limited IPO
Spice Communications Limited, a leading Indian GSM telecom service provider, is coming out with an IPO through the book building process. Spice Communications Limited IPO will open for subscription on 25th June 2007 and will close for subscription on 27 June 2007. Spice Communications Limited has fixed the price band for the IPO between Rs. 42 and Rs. 46 per share. Spice Communications Limited had recently raised about Rs. 2.5 crores at Rs. 45 per share through a pre IPO placement. As per the DRHP, Spice Communications Limited will use the proceeds of the IPO to retire part of its high cost debt and to fund the expansion plans of Spice Telecom, which is ranked eighth in India among GSM providers, in terms of size. Spice Telecom has about 3.5 million customers. Spice communications is jointly owned by Telekom Malaysia (Malaysia’s official service provider) and B.K. Modi (the chairman of the Modi group) in the ratio of 49:51. Currently, Spice Communications Limited is in an ailing state with its networth completely wiped off and erroded due to acumulated losses. Infact, Spice Communications Limited has a negative pre IPO networth of over 160 crores. Post IPO, the shares of Spice Communications Limited will be listed only on the stock exchange, Mumbai (BSE) as the listing norms of National Stock Exchange (NSE) does not provide for the listing of a company with negative pre IPO networth. The lead managers for the Spice Communications IPO are Enam Financial Consultants and UBS Securities India. The registrar for the Spice Communications IPO is Karvy Computershare Ltd. For updates on the subscription / oversubscription ratio of Spice Communications Ltd IPO and to know the IPO allotment status, refund details and listing date of Spice Communications IPO, do check this blog regularly.
Spice Communications Limited IPO Prospectus
For more information, read the Draft Red Herring prospectus of the Spice Communications Limited IPO Issue.
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NSE has declined to list the share on the bourses. as the net losses is far less than the company plans to raise, and a further prediction of losses.
refer NSE web page for details
@ Sandeep – Yes I know. I’ve mentioned the same in the post itself
“…shares of Spice Communications Limited will be listed only on the stock exchange, Mumbai (BSE) as the listing norms of National Stock Exchange (NSE) does not provide for the listing of a company with negative pre IPO networth…”
Would it be a good bet to apply for this IPO from “profit on listing” point of view?
I could find following opinions on at sight
R S Iyer(KR Choksey) : Apply
Manish Bhatt(Prabhudas Lilladher) : Apply
SP Tulsian(Investment Advisor) : Apply
BullishIndian, you have not mentioned any explicot opinion from you?
How is the Spice Telecom issue? I know its a pretty good take over candidate (optimal price is 60), but is that reason enough to apply to a -ve networth company’s IPO?
@Dny
spice tele seems to be a good bet for listing gains as grey market premium is about 18 rs. (41-46 band) vs 70-80 rs. for HIDL (430-500 band). Although it is subscribed only 0.19% on day one, in my opinion it should be oversubscribed easity. Akkbatra.
@Dny
spice tele seems to be a good bet for listing gains as grey market premium is about 18 rs. (41-46 band) vs 70-80 rs. for HIDL (430-500 band). Although it is subscribed only 0.19% on day one, in my opinion it should be oversubscribed easily. Akkbatra.
Daer friends,
As per my views, spice tele IPO has been oversubscribed to the extent of 110.76% within 2 and half hours on day two(at 12:31:38 hrs 26/6/2007) as against mere o.19% on day one.
@ Bullish Bhai,
As I mentioned time above, it comes to my notice that our website system time is lagging behind by about 11-12 hours. Please get it corrected in synchronisation with IST.
Thanks,
akkbatra.