To raise over $150 m via 20% stake sale in IPO: Spice Tele

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Dilip Modi, Chairman of  Spice Communication denies the market speculation of Idea picking up a stake in the company. He adds that the Spice Communication is looking to raise over USD 150 million via 20% stake sale in IPO and have got a nod from Sebi . Spice IPO will open in June.

Excerpts from the exclusive interview with Dilip Modi:

 

Q: Would you want to clarify or comment on the news that Idea Cellular has evinced interest in your company?

 

A: Yesterday we got the nod from Sebi to proceed with the IPO. So, at Spice Telecom we are proceeding with that and would open the IPO some time in the month of June. It (Idea evincing interest) is a pure market speculation and since we are in the process of the IPO, we would not like to comment on speculation at this stage.

 

Q: But are you looking at a pre-IPO placement and if indeed how much stake are you looking to dilute via that?

 

A: I think at this stage there is nothing that we are looking at. We are continuing with the process of the IPO and everything that will happen will be a step in that direction.

 

Q: But has anybody from the management of Idea Cellular approached you, or are you completely denying any talks with them?

 

A: Yes, it is pure market speculation and at this stage, given that we are committed to the process of IPO, which we are planning to open in the month of June, we deny any comments on market speculation.

 

Q: How much are you looking to raise via this IPO?

 

A: We are looking to dilute up to 20%, the price band of which will be fixed in the next two weeks, as we have just received the nod from Sebi. So, once we have fixed the price band we will be able to look at the size of the IPO.

 

Q: And what about the 20% dilution that you are taking up? How much money are you looking to raise via the IPO?

 

A: We are looking at over USD 150 million.

 

Q: Will we see the IPO hitting the markets by June?

 

A: Yes,that is the timing we have in mind.

 

Q: Any expansion plans that you can outline for us at this stage?

 

A: We have also received the LOIs for the national and international long distance business from the DoT. So that is a new area we will be entering after the IPO. We will continue to focus on consolidating our leadership position in Punjab and the state of Karnataka. And as we see new growth opportunities coming with spectrum availability, we will continue expanding in that direction.

 

Q: There would be a lot of interest that would be generated in the IPO. Have there been any talks, if not with Ideal Cellular, with any other players at this point in time for a dilution at the pre-IPO stage?

 

A: No, there have been no such talks.