Spice Communications, whose maiden public offering is opening on Monday, is banking on its foreign partner Telekom Malaysia's commitment for its ILD foray.
NEW DELHI: Mobile service provider Spice Communications, whose maiden public offering to raise up to Rs 520 crore is opening on Monday, is banking on its foreign partner Telekom Malaysia's commitment for its ILD foray.
"Upon implementation of ILD license, we expect to benefit through high volume commitments from Telekom Malaysia, which has investments and operations in Asia-Pacific region --Indonesia, Sri Lanka and Thailand," Spice Telecom managing director Umang Das said.
Spice Communications is expected to use a major portion of its IPO proceeds to get national (NLD) and international long distance (ILD) licences. The company, in which Telekom Malaysia holds 49 per cent stake, has received a non-exclusive letter of intent for providing STD and ISD services.
It is also keen to benefit from its foreign partner's global presence.
"We believe we will benefit from Telekom Malaysia's operational and management experience both in Malaysia and key regional markets through creating new products and services, implementing and leveraging group synergies such as in global procurement. TM is a consortium member of all submarine cable systems that land in Malaysia and has access to capacity in other such cables globally", he said.
"This can provide us with significant benefits of synergy for global connectivity and on competitive terms. Telekom Malaysia also has co-location facilities at major data centre and tele-houses which we also can access," Das said.
Spice has set a price band of Rs 41-46 per share for its IPO to raise between Rs 470-520 crore. A major portion of the issue proceeds would also be used for repayment of debt and payment to vendors for network equipment.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}