Spice Communications Limited IPO Message Board (Page 2)

HOLD. Remember that Spice was offered at half the P/E of its competitors. Hold till Sen5ex corrects (May be after 16K)

Spice Communications, one of the smaller players in the Indian telecom sector, has GSM operations in two circles (Punjab and Karnataka) and a subscriber base of 3mn; the company has applied for licenses in rest of the 21 circles. The company has received national & international long distance (N&ILD) licenses for which it is raising Rs5.2bn through its IPO. Spice’s high D/E at 2x (without factoring in off-balance sheet financing of Rs1.8bn) limits access to funds in future and would result in further equity dilution on expanding footprint.

Implied valuation of USD 201/subscriber at the issue price for Spice’s CY08E subscriber base is at 60% discount to that reflected in current valuations for Bharti Airtel, which seems justified with: i) 30% differential in ARPU, ii) limited presence, iii) absence of fixed line & long distance operations, and iv) 1,500bps difference in wireless operating margins.

Targeted pan India presence unlikely; growth to be restricted to existing circles

Spice has presence in only two circles at present and is yet to receive licenses in rest of the 21 circles. Given the present spectrum crunch and uncertainty in the spectrum policy (which would likely favour incumbents), we believe Spice would lag behind other larger players. Increasing market share in Punjab and Karnataka, where penetration is expected to improve from 30% and 20% in FY07 to 49% and 37% in FY09E respectively, would be the key growth driver. We expect subscriber base to increase at 41% CAGR through CY06-08E.

Captive long distance infrastructure and increasing scale to support margins

Spice currently routes its long distance traffic via other operators’ networks on per minute basis, shelling out substantial sums every year. We expect Spice to report savings up to ~3.5-4% of sales (Rs 400-500 million annually in the next two years), once it develops its own long distance infrastructure. Further leverage is expected from G&A on the back of increasing business scale. Overall, we expect margins to improve 580bps through H2CY06-CY08E.

Yet, restricted scope of business to keep margins lower than larger peers

Spice’s presence limited to two circles, where penetration is likely to reach 40-50% in the next two years, implies restricted growth options in the long run. Further, operating margins would be significantly lower than larger peers’ based on: i) lower proportion of on-net calls, ii) insufficient leverage of long distance infrastructure, iii) bargaining power for inter-connects, and iv) roaming with other operators.

Long term growth through expansion to new circles unlikely; probable acquisition to keep valuations high

Given presence in just two circles, long-term growth would only happen with Spice expanding its footprint, which would require strong funding (likely through equity dilution; debt would be too costly with CY07E D/E of 2x). In the present state of fierce competition and spectrum crunch, synergies from Spice’s operations make it a compelling acquisition target. This suggests ~25% premium over the company’s fair value of Rs 48/share through:
i) savings in capex, ii) higher operating leverage on the back of larger subscriber base, and iii) ready access to 3mn subscribers. Also, there would be a premium for management control.

hold till 62 or 65 . it will move to it in early session. so don't sell to early .



* Listing On: Thursday, July 19, 2007
* BSE Script Code: 532863
* NSE Symbol: SPICETELE
* Listing in:
* ISIN: INE684H01018
* Issue Price: Rs. 46/- Per share (Face Value of Rs. 10/-)

hold it.... its a good stock and can cross 100 in one month...telecom stocks are leading

57 about listing

sell at 62

thanks raju...

BSE CODE IS 532863.KINDLY TAKE NOTE. SPICE IS GOING TO LIST TOMMOROW ITSELF. GO TO BSEINDIA.COM NOTICE BOARD.

DEAR FRNDS .I PERSONALLY CALLED ON SPICE NOIDA THEY TOLD LISTING IS ON 19.7.07 DAM SURE ENJOY LISTING GAINS

20070718-14
Notice date : Wednesday, July 18, 2007
Subject : Listing of Equity Shares of Spice Communications Limited

Segment Name Equity





Contents :

--------------------------------------------------------------------------------

Trading Members of the Exchange are hereby informed that effective from Thursday, July 19, 2007 the equity shares of Spice Communications Ltd. are listed and admitted to dealings on the Exchange. The group for the scrip will be intimated through a separate notice.



Name of the company


Securities
Market Lot
Scrip Code

Spice Communications Limited 689,925,000 Equity shares of Rs. 10/- each fully paid-up. Distinctive numbers:

(1 to 689,925,000)


One Share
532863

Registered Office:

Spice Communications Limited
60-D Sainik Farms,

New Delhi ? 110062

India

Tel: (91 11) 6546 9839-43

Fax: (91 11) 2955 2642

Website: www.spiceindia.com

Email: complianceofficer@spiceindia.com
Abbreviated Name on BOLT System



SPICE TELE
Scrip ID on BOLT System



SPICETELE
ISIN No.





INE684H01018

Issue price: Rs. 46 Per share (Face Value of Rs. 10/- and Premium of Rs. 36)
Date of Allotment: July 10, 2007

HELLO FRENS
I REQUEST ALL OF U NOT TO MISGUIDE US !
PLEASE TEWLL THE CORRECT INFORMATION
TANUSHREE PLS TELL THE DATE OF LISTING ANM ALSO TELL THE LISTING PRICE!

In case of IPO refund,it is resposebality of registar of online trading service provider.

Hi,
BSE person told one more thing. Spice may list next week also.Any way not tomorrow..
stop speculation.. BSE doesnot know.. how CNBC AWAJ can flash..this.. funny guys.

Hi i called BSE chennai office.. they told they did not get any information regarding the SPice listing. so it is damn sure not tomorrow..
dont speculate..please stop speculate..

its not going to list tomorrow.... it will be listed next week...

now it is confirmed that spice shares will list tomorrow. cnbc awwaz is flashing this message.

see the link ..
http://business-standard.com/common/storypage_c.php?leftnm=10&autono=289953

july 4th edition..see

The shares of Spice will probably be listed either on July 19 or July 20, Company Secretary Preeti Malhotra said in a telephone interview from the company痴 headquarters in Noida.

Hi suresh,
Can u tell me which website saying Spice .commlists on Tomorrow.July 19th. can u share that informtion. becz bse its not there .. share khan doesnot have that information.lot ofn speculation going on..we need to know the real liating date

yes the website confirms spice lists on 19th july (Thursday) All the best.

i am not getting any information about listing from anywhere.... i dont think announcement has been made yet...