SPICE COMMUNICATIONS LTD- IPO
Type of Issue : Book Built
Issue Opens: 25 June, 2007
Issue Closes: 27 June, 2007
Issue Size : 113,111,111 (No. of Shares)
Lower Price Band: Rs.41
Upper Price Band: Rs.46
Total Issue Size: RS.520 Crores
Application Multiple: 135 and in multiples there off starting with at least 135 shares.
Maximum Shares: 2160 (for Retail)
Information URL : http://www.spiceindia.com/
Prospectus URL : http://www.sebi.gov.in/dp/spicecom.pdf
Company Details :
Address : 60-D, SAINIK FARMS, NEW DELHI - 110 062.
Email : complianceofficer@spiceindia.com
Contact Details : 911165469839 /911165469843 /911129552642 (fax)
ISSUE Description
Company Background
Spice Communication Ltd. commenced operations in 1997 as a cellular services provider in the states of Punjab and Karnataka with an allocation in the 900 MHZ spectrum. As of March 31, 2007, they are the second largest cellular services provider in Punjab and the fifth largest in Karnataka measured by the total number of subscribers. On a combined basis the customer base consists of approximately 2.73mln subscribers. Both of these states are recognized as major economic hubs of India, with Punjab enjoying the highest per capita income in the country, and Karnataka known as the “Silicon Valley” of India.
SCL has installed 1,358 sites throughout Punjab and 1,019 sites throughout Karnataka. The company owns/leases optical fibre backbone and micro transmission links with back-up and redundancy support in the markets in which they operate. SCL’s network coverage and large number of distribution outlets have enabled them to compete effectively in the cellular ser4vices market in these states.
SCL’s promoters are Mr. Dilip Modi and Modi Wellvest Private Ltd. Telekom Malaysia (TM), through TMI India, a wholly owned subsidiary of TM International is an investor (39.20% post issue stake) in the company since March 2006. TM is a leading telecommunications company based in Malaysia, with an established presence in the Asia-Pacific region, including Sri Lanka, Bangladesh, Indonesia, Cambodia, Singapore and Pakistan.
Objective of the Issue:
a) Part Payment of long term debt b) Payment of license fee for NLD and ILD and related capital expenditures, etc c) Payment to vendors for equipments and other capital expenditures. To complement to SCL’s existing markets, it has recently embarked on a pan-India expansion strategy by applying for licences for an additional 21 circles throughout India to provide GSM cellular services, in addition to licences for providing NLD and ILD services.
Key Financials for the year ended June 30, 2006
Revenue Rs.6,802.87Mln PAT Rs.(687.42)Mln
EPS Rs.(1.25/-)
Pre-ipo placement
The company has announced the pre-IPO placement of 24.83 million shares at Rs 45 per share to raise about Rs 112 crore. The shares were picked up by group of investors led by Lehman Brothers and Spinnaker Investments
Recommendation
SCl is an established player in its circle of operation. Besides a vibrant and well-recognised brand name and a well experienced management team, Spice Communication Ltd.has an investor with strong investor capabilities in Telekom Malaysia. Apply aggressively for listing gains.
Issue Opens: 25 June, 2007
Issue Closes: 27 June, 2007
Issue Size : 113,111,111 (No. of Shares)
Lower Price Band: Rs.41
Upper Price Band: Rs.46
Total Issue Size: RS.520 Crores
Application Multiple: 135 and in multiples there off starting with at least 135 shares.
Maximum Shares: 2160 (for Retail)
Information URL : http://www.spiceindia.com/
Prospectus URL : http://www.sebi.gov.in/dp/spicecom.pdf
Company Details :
Address : 60-D, SAINIK FARMS, NEW DELHI - 110 062.
Email : complianceofficer@spiceindia.com
Contact Details : 911165469839 /911165469843 /911129552642 (fax)
ISSUE Description
Company Background
Spice Communication Ltd. commenced operations in 1997 as a cellular services provider in the states of Punjab and Karnataka with an allocation in the 900 MHZ spectrum. As of March 31, 2007, they are the second largest cellular services provider in Punjab and the fifth largest in Karnataka measured by the total number of subscribers. On a combined basis the customer base consists of approximately 2.73mln subscribers. Both of these states are recognized as major economic hubs of India, with Punjab enjoying the highest per capita income in the country, and Karnataka known as the “Silicon Valley” of India.
SCL has installed 1,358 sites throughout Punjab and 1,019 sites throughout Karnataka. The company owns/leases optical fibre backbone and micro transmission links with back-up and redundancy support in the markets in which they operate. SCL’s network coverage and large number of distribution outlets have enabled them to compete effectively in the cellular ser4vices market in these states.
SCL’s promoters are Mr. Dilip Modi and Modi Wellvest Private Ltd. Telekom Malaysia (TM), through TMI India, a wholly owned subsidiary of TM International is an investor (39.20% post issue stake) in the company since March 2006. TM is a leading telecommunications company based in Malaysia, with an established presence in the Asia-Pacific region, including Sri Lanka, Bangladesh, Indonesia, Cambodia, Singapore and Pakistan.
Objective of the Issue:
a) Part Payment of long term debt b) Payment of license fee for NLD and ILD and related capital expenditures, etc c) Payment to vendors for equipments and other capital expenditures. To complement to SCL’s existing markets, it has recently embarked on a pan-India expansion strategy by applying for licences for an additional 21 circles throughout India to provide GSM cellular services, in addition to licences for providing NLD and ILD services.
Key Financials for the year ended June 30, 2006
Revenue Rs.6,802.87Mln PAT Rs.(687.42)Mln
EPS Rs.(1.25/-)
Pre-ipo placement
The company has announced the pre-IPO placement of 24.83 million shares at Rs 45 per share to raise about Rs 112 crore. The shares were picked up by group of investors led by Lehman Brothers and Spinnaker Investments
Recommendation
SCl is an established player in its circle of operation. Besides a vibrant and well-recognised brand name and a well experienced management team, Spice Communication Ltd.has an investor with strong investor capabilities in Telekom Malaysia. Apply aggressively for listing gains.
posted by Sensex-Blog Admin at 2:27 AM
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