Spice Communications has launched its initial public offering (IPO), consisting of 113.1 million equity shares, on the Bombay Stock Exchange. The issue, which was listed from June 25 to June 27, was oversubscribed 38 times. The company raised funds worth Rs 5.2 billion at a per share price of Rs 46. The issue constitutes 16.39 per cent of the fully diluted post-issue equity share capital. The IPO proceeds will reportedly be utilised towards part-repayment of debt, payment of licence fees for starting national long distance and international long distance services, and for repayment of vendor dues.
Spice also concluded a pre-IPO placement, raising about Rs 1.12 billion, with Lehman Brothers and Spinnaker Capital taking stakes worth $10.1 million each.
