Spice Digital to raise Rs 200 crore via IPO by fiscal-end

NEW DELHI: Spice Digital, a part of the B K Modi-promoted Spice group, plans to raise over Rs 200 crore through initial public offering (IPO) by the fiscal-end, a senior company official said on Thursday. The company will dilute up to 25% stake through the IPO.

The device arm of the Spice Group, Spice Mobility, led by Dilip Modi, also plans to raise about Rs 500 crore through qualified institutional placement (QIP) and sale of treasury stocks. Spice Mobility will have treasury stocks worth Rs 4.2 crore as a result of the reverse merger process. The company plans to sell shares worth Rs 3 crore of this to raise funds. Spice Mobility will start the fund raising process by the third quarter of this fiscal year.

“Both the fundraising programmes will happen only after the reverse merger process is complete. We expect all the necessary approvals by September,” Dilip Modi said during an event organised to launch Spice Android phones powered by Qualcomm chipsets. Spice Mobile is undertaking the process of reverse merger with Spice Televentures to form Spice Mobility. Spice Digital is a subsidiary company of Spice Mobility.

The company plans to use the funds to enhance its R&D facility, set up design studio, brand building and also to foray in other markets including South Africa, Middle East and South East Asia.