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Spice raises Rs 520 cr via IPO

July 03, 2007 14:43 IST
Source:PTI
Mobile service provider Spice Communications has raised Rs 520 crore (Rs 5.20 billion) through its initial public offer, for which the issue price has been fixed at Rs 46 a share. "The issue price has been fixed at the upper end of the price band at Rs 46 per share," a company official said.

The company had fixed a price band of Rs 41-46 per share for the issue. Spice Communications received a robust response from investors for its initial public offering of 11.3 crore equity shares with the issue getting subscribed over 37 times.

The company is expected to use a major portion of its IPO proceeds to get national long distance and international long distance licences.

Spice Communications, in which Telekom Malaysia holds 49 per cent, has received a non-exclusive letter of intent for providing STD and ISD services. A major portion of the issue proceeds would also be used for repayment of debt and payment to vendors for network equipment.

Source: PTI
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