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Spice Comm IPO to issue 138-m shares

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CIOL Bureau
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MUMBAI: Telecom services firm Spice Communications Ltd plans to issue 137.985 million equity shares in an initial public offering, its filing with the Indian market regulator showed.

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The issue would constitute 20 per cent of the fully-diluted post-equity capital of the company, the draft prospectus said.

Malaysia's TM International holds 49 per cent in Spice through its wholly-owned unit, TMI India.

The proceeds of the issue would be used partly to repay long term debt, pay for licences and other capital expenditure requirements, it said.

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Spice provides cellular services on the GSM platform in Punjab and Karnataka. As of December 31, 2006, the company had a subscriber base of 2.45 million.

Spice has applied for mobile services licenses to operate in 20 more circles and also to provide international and domestic long distance services.

For the year ending June 2006 it reported net loss of Rs 685.76 million on revenues of Rs 6.8 billion, the prospectus filed last week said.

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The company is also considering a private placement of shares before the issue, it added.

The promoters, Dilip Modi and Modi Wellvest Pvt. Ltd, currently hold 51 percent stake in Spice, which will get reduced to 40.8 per cent after the issue. TMI India will similarly reduce its stake to 39.2 per cent after the issue.

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