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Spice Mobility to mop up Rs 700 cr

22 Nov 2010 Evaluate

Spice Mobility would raise around Rs600-700 crore through a sale of 3.5 crore treasury stock to institutional investors to fund its inorganic plans. The company is in the process of looking out to acquire companies both in India and abroad. The trust is in talks with leading merchant bankers to sell the 3.5-crore shares to institutional investors at a premium of Rs145 a share

The shares comprising around 15% of the company’s equity have been earmarked for sale to institutional investors. The shares are held under a trust that was formed after the recent restructuring. Around 4.7-crore shares or 63.25% held by Spice Televentures in the Spice Mobility earlier are now part of the trust.

Spice Mobility, which has three divisions — mobile handset, retail, and value-added services — recently merged with Spice Televentures and allotted 16.34-crore equity shares of Rs3 each to shareholders of the transferor company — Spice Global Investments. This resulted in an increase in its issued share capital to Rs71.4 crore from Rs22.4 crore, due to which Spice Global Investments now holds 68.65% in Spice Mobility.

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