Spice Communications rings on stake sale buzz

Spice Communications rose 1.77% to Rs 34.50 at 13:35 IST on BSE on reports Emirates Telecommunications is in talks to take a stake in the company.

The scrip had touched a high of Rs 36 and a low of Rs 34.10 so far during the day. The stock had hit a 52-week high of Rs 69.65 on 13 December 2007 and a 52-week low of Rs 23.25 on 22 January 2008.

The mid-cap telecom service provider has an equity capital of Rs 689.92 crore. Face value per share is Rs 10.

At the current price of Rs 34.50, the scrip trades at a PE multiple of 1.48, based on Q4 December 2007 annualised EPS of Rs 23.19.

Spice Communications reported a net profit of Rs 399.92 crore in the Q4 Decmeber 2007 as against net loss of Rs 13.89 crore in the Q4 December 2006. Sales rose 24.8% to Rs 255.57 crore in Q4 December 2007 over Q4 December 2006.

Spice Communications provides mobile telecommunication services in India. The company also provides Internet telephony, Internet services and broadband services, in addition it has commenced offering national and international long distance services.