Spice Tele Fixes Rs 41-46 IPO Price Band
Cellular operator Spice Communications Ltd. has fixed the price band of its forthcoming IPO at Rs 41-46.
Spice Communications recently did a private placement of 24,837,889 shares at Rs 45 and raised Rs 112 crore (Rs 1.12 billion).
Post-IPO, the stake of both the promoters, B K Modi and Telekom Malaysia will come down by 10% each.
Currently Modi holds 51% of Spice Communications and rest 49% is with Telekom Malaysia.
Spice Communications is the second largest cellular operator in Punjab with around 1.91 million subscribers and the fifth largest cellular operator in Karnataka, with around 0.82 million subscribers.
The IPO size is expected to be around Rs 520 crore at the upper band of the IPO.
The worrying factor for the IPO is that the company has accumulated losses of over Rs 600 crore and doesn’t have the size to compete with the bigger players in the cellular market.