Spice Telecom Plans All India Presence; To Invest $2.5 Billion, IPO, Debt On Cards

The Wall Street Journal: It’s not time yet to write off Spice Communications, a second rung mobile services operator in India. The company plans to invest about $2.5 billion in the next two to three years. Spice, 49 per cent owned by Telekom Malaysia Bhd., will go in for a combination of public float and debt to raise the capital. The investment is intended to expand its presence from two mobile circles (region) currently to all 23 in India. An IPO to raise $250-300 million is planned by December. There will be a follow-on ffering by December 2008 to raise an additional $350 million. Besides, it also plans to raise debt and some funding from the company’s owners.
Spice, majority-owned by BK Modi’s Mcorp Global, operates in Punjab and Karnataka through the Spice Telecom brand.