Spice Communications Ltd, one of India's leading private mobile service operators on Wednesday announced plans to raise Rs 5.2 billion through its maiden initial public offering (IPO).
The company, which provides mobile phone services in the GSM segment in Punjab and Karnataka, plans to utilise the money in repaying debts, payment of license fees and other related capital expenditures and also to expand its services to other areas.
"Our aim right now is to strengthen and consolidate our position in our existing markets of Punjab and Karnataka where we intend to be one of the leading players," Umang Das, managing director, Spice Communications, told reporters here.
"We have applied for licenses to be able to provide cellular services in additional 21 circles across the country," Das added.
He said the application was pending with the Department of Telecommunications and the company would focus on spreading a pan-India network if it is able to obtain the license.
The company recently concluded a pre-IPO placement of 24,873,889 shares at Rs 45 per share, thereby raising Rs 1.12 billion.
The price band for the IPO has been fixed between Rs 41 and Rs 46 per share. The issue opens on June 25 and closes on June 27.
"We will also seek to improve and expand our value added services like ring tones, games and other content services that our subscribers can access through their handsets," Das said.
The Modi Group, one of India's leading business houses, owns a 51 per cent stake in Spice Communications, while the remaining stake is with Telekom Malaysia.