Spice Communications Limited IPO (Spice Telecom IPO) Detail

Jun 25, 2007 - Jun 27, 2007

Incorporated in 1997, Spice Communications Limited (or Spice Telecom) is a cellular services provider in the states of Punjab and Karnataka in India. Spice Telecom has around 14.26% market share in these states.

Spice total billable subscribers as on December 31, 2006 were 1.86 million comprising approximately 1.41 million pre-paid subscribers and approximately 0.45 million post-paid subscribers. In three years ended June 30, 2004, 2005 and 2006, Spice telecom's total income was Rs. 5,544 million, Rs. 6,430.59 million and Rs. 6,804.53 million, respectively.

Malaysia’s incumbent service provider Telekom Malaysia (TM) holds a 49%, while industrialist and Modi group chairman B K Modi owns the remaining 51% stake in Spice Communications.

Objects of the Issue

The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to
1. Part payment of long term debt;
2. Payment for NLD/ILD license fees and
3. Meet capital expenditure requirements.

Spice Telecom IPO Details

IPO Date Jun 25, 2007 to Jun 27, 2007
Listing Date [.]
Face Value ₹10 per share
Price ₹41 to ₹46 per share
Lot Size 135 Shares
Total Issue Size113,111,111 shares
(aggregating up to ₹520.31 Cr)
Issue Type Book Built Issue IPO
Listing At BSE

Spice Telecom IPO Reservation

Spice Telecom IPO Lot Size

The Spice Telecom IPO lot size is 135 shares.

Application Lots Shares Amount
Retail (Min) 1 135 ₹6,210
Retail (Max) 32 4320 ₹198,720
Lot Size Calculator

IPO Notices

External Link
Delisting of Spice Communications Limited

Spice Communications Limited (BSE 532863) delisted from May 21, 2010 after its merger with Idea Cellular Limited.

Spice Telecom IPO Subscription Status (Bidding Detail)

The Spice Telecom IPO is subscribed 37.63 times on Jun 27, 2007 5:00:00 PM. The public issue subscribed 4.05 times in the retail category, 58.60 times in the QIB category, and 19.23 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)

Spice Telecom IPO Prospectus

Spice Telecom IPO Rating

Rating:Rated 3.9 stars
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Company Contact Information

Spice Communications Limited
Spice Communications Limited,
60-D Sainik Farms,
New Delhi – 110062, India
Phone: (91 11) 6546 9839
Email: complianceofficer@spiceindia.com
Website: http://www.spiceindia.com

Spice Telecom IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: mailmanager@karvy.com
Website: https://karisma.kfintech.com/

Spice Telecom IPO Analysis

Spice Telecom IPO Recommendation Summary

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Members 0 0 0

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Spice Telecom IPO FAQs

Spice Telecom IPO is a main-board IPO of 113,111,111 equity shares of the face value of ₹10 aggregating up to ₹520.31 Crores. The issue is priced at ₹41 to ₹46 per share. The minimum order quantity is 135 Shares.

The IPO opens on Jun 25, 2007, and closes on Jun 27, 2007.

KFin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE.

The Spice Telecom IPO opens on Jun 25, 2007 and closes on Jun 27, 2007.

Spice Telecom IPO lot size is 135 Shares and the minimum order quantity is .

You can apply in Spice Telecom IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Spice Telecom IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Spice Telecom IPO allotment status.

The Spice Telecom IPO listing date is not yet announced. The tentative date of Spice Telecom IPO listing is [.].
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Spice Telecom IPO Message Board

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449. rcshy |   Link |Jul 23, 2007 10:11:33 PM
Please let me know anyone has got the refund (those who have not got allotment), I also would like to know how they have got it (means through ECS or Check)?....Please help me...
448. Guest |   Link |Jul 23, 2007 12:31:01 PM
Have someone got refund from Spice ??
447. manis |   Link |Jul 21, 2007 11:43:36 PM
Friends. the prediction was good about the listing price of spice. If it is a loss making co. better to book profit.
446. Pravin |   Link |Jul 20, 2007 9:05:21 AM
It was a nice listing and gave good returns. Guys can book partial-profit above 62 though if you can hold till acquistion games begin it might see new levels of 80+.

Happy investing!!!
445. jinishans |   Link |Jul 19, 2007 7:01:54 PM
Hey guys

Dont ask people to sell Spice. If you want to sell and if you've shares sell it.

For Others who has Spice thru IPO / bought yesterday in Secondary market,


Here are the facts;
1. Telecom Sector is going to be the No. 1 sector in India
2. Why India, Telecom is the next revolution
3. Almost in all the Developed Nations they reached the max subscriber range
4. India is going to dectate terms (Particularly Bharti, TATA, Reliance Indicom, BSNL (will come to market soon i feel), Idea). Offcourse not Spice.


1. Already AT & T is vying for a strong partner in India / a buyout (Spice is the 1st choice)
2. Idea is looking to acquire Spice (already talks are there)
3. Spice has lot of expansion paths

So, longterm buyers, just have some shares (not much) of Spice.

444. paresh |   Link |Jul 19, 2007 2:44:03 PM
443. tn |   Link |Jul 19, 2007 2:08:33 PM
sell all shares of spice quickly. loss making company .
no long term potential so why hold sell each and every share as there will be no interset from tommorow. spice telecom to go to 42-44 levels in few days
442. Prave |   Link |Jul 19, 2007 2:04:02 PM
Book profit on half of the shares you have,and next half of the share keep for long term.
441. tn |   Link |Jul 19, 2007 11:36:51 AM
i am sure intimespectrum has done some cheating in allied digital . i applied in 8 application and got nil in all. ideally if u applied maximum there is about 25% allotmet so i just want to know from people for those who applied that how many people who applied in maximum got allotmet it may be possible they have intimespectrum taken some shares like karvy did
440. Bharat |   Link |Jul 19, 2007 11:16:47 AM
Did anyone got the refund for Spice. And if yes, whether it was through ECS, or cheque.
439. Pravin |   Link |Jul 19, 2007 11:06:30 AM
It seems there is a huge resistance @ 60 level, Once it crosses 60 it might see some new heights.
438. Raju |   Link |Jul 19, 2007 10:38:54 AM
Its currently trading above 58/- @10:30am. Telecom sector is going to boom soon like anything with all next generation networks and products like VoIP, IPTV, Vedio on Demand. 3-4 years back people cant afford to have mobile connectibecause of high tariff rates. Today even damn footpath guys do have cell phone in their hand. So guys keep an eye on this sector.
437. tn |   Link |Jul 19, 2007 10:33:04 AM
sell spice telecom.why keep loss making company .instead buy tatat tele which may see profits in this quarter.
sell spice as its going to go below issue price.
436. Prashant |   Link |Jul 19, 2007 10:27:42 AM
There are mixed report on this board, Can anyone enlighten me on what would be the best, To Sell or to Hold and what would be its year end target.
435. adarsha |   Link |Jul 19, 2007 10:05:50 AM
Pls book the profit.
It will settle between 45 and 50
434. K.SREEDHAR |   Link |Jul 19, 2007 9:12:27 AM
unable to track the application numbers for alldig.


433. Raghu |   Link |Jul 18, 2007 11:19:27 PM
Those who have got Spice alloted, hold the stock patiently. Telecom sector is doing good and has a good growth story. It had got very good response from QIBs and NIH. It's up to you to reep the benefits. Happy Listing:)
432. market expert |   Link |Jul 18, 2007 10:37:45 PM
it's not going to merge with idea . because all that deals with idea r now no more . it was announced before a month ..that idea has moved out of spice .....it was in economic times .
431. RAVI KASPA |   Link |Jul 18, 2007 10:07:11 PM
Book profits in Spice Comm beyond Rs 60: I-sec

ICICI Securities has come out with report on Spice Communications, which is expected to list in this week. They suggest investors to book profits beyond Rs 60, given the low long-term growth potential and better investment opportunities in the market.

ICICI Securities report on Spice Communications

Spice Communications, one of the smaller players in the Indian telecom sector, has GSM operations in two circles (Punjab and Karnataka) and a subscriber base of 3mn; the company has applied for licenses in rest of the 21 circles. The company has received national & international long distance (N&ILD) licenses for which it is raising Rs5.2bn through its IPO. Spice’s high D/E at 2x (without factoring in off-balance sheet financing of Rs1.8bn) limits access to funds in future and would result in further equity dilution on expanding footprint.

Implied valuation of USD 201/subscriber at the issue price for Spice’s CY08E subscriber base is at 60% discount to that reflected in current valuations for Bharti Airtel, which seems justified with: i) 30% differential in ARPU, ii) limited presence, iii) absence of fixed line & long distance operations, and iv) 1,500bps difference in wireless operating margins.

Targeted pan India presence unlikely; growth to be restricted to existing circles

Spice has presence in only two circles at present and is yet to receive licenses in rest of the 21 circles. Given the present spectrum crunch and uncertainty in the spectrum policy (which would likely favour incumbents), we believe Spice would lag behind other larger players. Increasing market share in Punjab and Karnataka, where penetration is expected to improve from 30% and 20% in FY07 to 49% and 37% in FY09E respectively, would be the key growth driver. We expect subscriber base to increase at 41% CAGR through CY06-08E.

Captive long distance infrastructure and increasing scale to support margins

Spice currently routes its long distance traffic via other operators’ networks on per minute basis, shelling out substantial sums every year. We expect Spice to report savings up to ~3.5-4% of sales (Rs 400-500 million annually in the next two years), once it develops its own long distance infrastructure. Further leverage is expected from G&A on the back of increasing business scale. Overall, we expect margins to improve 580bps through H2CY06-CY08E.

Yet, restricted scope of business to keep margins lower than larger peers

Spice’s presence limited to two circles, where penetration is likely to reach 40-50% in the next two years, implies restricted growth options in the long run. Further, operating margins would be significantly lower than larger peers’ based on: i) lower proportion of on-net calls, ii) insufficient leverage of long distance infrastructure, iii) bargaining power for inter-connects, and iv) roaming with other operators.

Long term growth through expansion to new circles unlikely; probable acquisition to keep valuations high

Given presence in just two circles, long-term growth would only happen with Spice expanding its footprint, which would require strong funding (likely through equity dilution; debt would be too costly with CY07E D/E of 2x). In the present state of fierce competition and spectrum crunch, synergies from Spice’s operations make it a compelling acquisition target. This suggests ~25% premium over the company’s fair value of Rs 48/share through:
i) savings in capex, ii) higher operating leverage on the back of larger subscriber base, and iii) ready access to 3mn subscribers. Also, there would be a premium for management control. We recommend booking profits beyond stock price of Rs 60.

430. RAJESH |   Link |Jul 18, 2007 10:03:33 PM
Spice Comm to list at around Rs 55-60: Experts

GSM based service provider Spice Communications will list on the bourses with 68,99,25,000 shares on July 19, 2007. The issue price fixed at Rs 46 per share. BSE ID is 532863.

Analysts told Moneycontrol.com that Spice Communication is expected to list at around Rs 55-60. They advised to book profits.

R S Iyer of KR Choksey Securities says, "Spice Communications is expected to list at around Rs 56-59. Immediate target for the stock will be at Rs 60 but if it crosses Rs 60 then book profits."

Investment Advisor, S P Tulsian says, "Spice Comm may list at around Rs 55-56. Investors can book profits as there are better companies available in telecom sector in valuation terms."

Manish Bhatt of Prabhudas Lilladher adds, "The stock may see a premium of Rs 12-15 on listing over its issue price of Rs 46. Short term investors can book profits otherwise investors can hold for long term."

The company had come out with initial public offering (IPO) of 1.13 crore shares at a price band of Rs 41-46 per share. The issue was oversubscribed by 37 times.

Spice Comm raised around Rs 523 crore in the upper end of the price band of Rs 41-46 per share.

A major portion of the issue proceeds would be used towards repayment of debt, payment of license fee for national (NLD) and international long distance (ILD) communication segments and payment to vendors for network equipments.

Enam Financial Consultants and UBS Securities Pvt Ltd are book running lead managers to the issue.

Sunil S Matkar -