Spice Digital to raise over Rs200 crore through IPO
20 Aug 2010
BK Modi group company Spice Digital plans to raise over Rs200 crore through initial public offering (IPO) by the fiscal-end according to a senior company official. The company will dilute up to 25 per cent stake through IPO.
Spice Group device arm, Spice Mobility led by Dilip Modi also plans to raise around Rs500 crore though qualified institutional placement (QIP) and treasury stock sale. The company will have treasury stocks worth Rs4.2 crore as the result of a reverse merger process.
The company is planning to sell shares worth Rs3 crore of this to raise funds for which Spice Mobility will start the process by the third quarter of this fiscal year.
Modi said during an event organised to launch Spice Android phones powered by Qualcomm chipsets that both fundraising programmes would happen only after the reverse merger process had been completed.
Spice Mobile is in the process of implementing a reverse merger with Spice Televentures for Spice Mobility. Spice Digital is a Spice Mobility subsidiary.
''Both the fundraising programmes will happen only after the reverse merger process is complete. We expect all the necessary approvals by September,'' Dilip Modi said during an event organised to launch Spice Android phones powered by Qualcomm chipsets. Spice Mobile is undertaking the process of reverse merger with Spice Televentures to form Spice Mobility. Spice Digital is a subsidiary company of Spice Mobility.