Spice to go all India with $2.5-b kitty
Spice to go all India with $2.5-b kitty
Delhi-based BK Modi groups MCorp Global has decided to invest up to $2.5 billion (Rs 11,700 crore) over two to three years in its flagship firm Spice Communications for expanding cellular business across the country.
Spice would spend around $2 billion in entering new telecom service areas and around $500 million in expanding the existing business. At present, Spice has presence in just two telecom circles (service areas) — Punjab and Karnataka, with revenues of under Rs 600 crore and very small net profit. Now, to cash in on the telecom boom in India, Spice has applied for licences for another 21 circles to have a nationwide presence.
Unfolding the plans, MCorps VC and president Dilip Modi said that Spice would dilute up to 20% of equity to raise about $250-300 million by December in the first round of IPO. By 2008 end, depending on its funding needs, it would raise another $350 million. Modi said the rest would be a combination of debt and vendor financing.
More : timesofindia.indiatimes.com