Spice Comm to list at around Rs 55-60: Experts

GSM based service provider Spice Communications will list on the bourses with 68,99,25,000 shares on July 19, 2007. The issue price fixed at Rs 46 per share. BSE ID is 532863.

Analysts told Moneycontrol.com that Spice Communication is expected to list at around Rs 55-60. They advised to book profits.

R S Iyer of KR Choksey Securities says, "Spice Communications is expected to list at around Rs 56-60. Immediate target for the stock will be at Rs 70 but if it crosses Rs 60 then book profits."

Investment Advisor, S P Tulsian says, "Spice Comm may list at around Rs 55-56. Investors can book profits as there are better companies available in telecom sector in valuation terms."

Manish Bhatt of Prabhudas Lilladher adds, "The stock may see a premium of Rs 12-15 on listing over its issue price of Rs 46. Short term investors can book profits otherwise investors can hold for long term."

The company had come out with initial public offering (IPO) of 1.13 crore shares at a price band of Rs 41-46 per share. The issue was oversubscribed by 37 times.

Spice Comm raised around Rs 523 crore in the upper end of the price band of Rs 41-46 per share.

A major portion of the issue proceeds would be used towards repayment of debt, payment of license fee for national (NLD) and international long distance (ILD) communication segments and payment to vendors for network equipments.

Enam Financial Consultants and UBS Securities Pvt Ltd are book running lead managers to the issue.

Sunil S Matkar -