GSM service provider Spice Communications plans to raise $250 million (nearly Rs 1,175 crore) from the primary market, with its initial public offering slated for the first quarter of the next year.
The company intends to use the proceeds for its expansion plans, which include commencing operations in six more states in the country.
"The company is in talks with four merchant bankers, of which one would be finalised by Monday. On the appointment of bankers and depending on the market conditions and subject to approvals, the date of the IPO would be announced," a top official of Spice Communications revealed.
The IPO would happen by the first quarter of 2007, with the listing on both BSE and NSE, he said.
The company would use the proceeds of the IPO for its expansion plans, including commencing of operations in new circles, as the company was gearing up for a pan-India presence.
It had applied for licences in six more states, like Rajasthan and Uttar Pradesh, and was expecting to launch the services by the end of this year.
Malaysia's largest telecom company Telekom Malaysia holds 49 per cent stake in the company through its subsidiary, TM International, while the balance 51 per cent is owned by SpiceCorp (India) and associates.
SpiceCorp is the flagship company of MCorp Global, a company into telecommunications, office automation and information technology. Earlier, TM had picked up 49 per cent stake for $178.8 million.
Spice Communications offers its GSM services under the brand name, Spice Telecom, and has operations in Punjab and Karnataka, servicing over over 1.7 million subscribers.
The company, which operates out of only two circles of the total 23 circles, is planning to launch mobile services in six telecom circles in India and to apply for both national and international long-distance licences.
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