Spice Telecom to raise 150 mn dollar via IPO
The ongoing boom in the telecom market will witness Spice Telecom entering the capital market soon to fund its future expansion plans, which include entering new circles and long-distance telecom service.
By Sushmita Mohapatra, TNN |
BANGALORE: The ongoing boom in the telecom market will witness Spice Telecom entering the capital market soon to fund its future expansion plans, which include entering new circles and long-distance telecom service.
Spice Telecom will be hitting the markets with its IPO by March-end. The company plans to raise $150 million by divesting 15-20% of its stake. Currently, MCorp Global 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 for around $178.2 million. Through the IPO, both Spice Telecom and Telekom Malaysia will divest their stake.
"We plan to use the funds raised through the IPO to fund our expansion plans . We will get new licenses by month-end. We are getting our NLD and ILD licenses soon. Along with Telekom Malaysia that operates in nearly 9 countries, we hope to roll-out our international services soon," said Dilip Modi, chairman and managing director, Spice Telecom.
The company currently has a debt of Rs 1040 crore ($ 260 million). Spice Telecom offers cellular services in Punjab and Karnataka with a total subscriber base of nearly 2.5 million.
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Spice Telecom has also bagged a contract from Indian Railways for providing enquiry and e-ticketing services. Spanco Telesystems and Spice Telecom have formed a 50:50 joint venture, forming a consortium that will provide VAS services for railways passengers. Spice Telecom also plans to set up kiosks in railway platforms to sell low-end mobile phones for around Rs 1000. To provide enquiry services the company plans to set-up four regional hubs. Spice Telecom is also in talks with other mobile operators to provide a low-fee roaming package to railways users.
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