Spice Communications rings

Spice Communications surged 4.14% to Rs 41.50 at 13:03 IST on BSE on reports Telekom Malaysia is looking at increasing its stake in the company to at least 51% through a combination of open offer and acquisition of shares the co-promoters.

The scrip had touched a high of Rs 42.40 and a low of Rs 40.60 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 41.50, the scrip trades at a PE multiple of 1.78, based on Q4 December 2007 annualised EPS of Rs 23.19.

Telekom Malaysia currently holds 39.2% stake in Spice Communications while the Modi family holds a 40.8% stake in through Modi Wellvest (as at end March 2008).

Spice Communications reported a net loss of Rs 36.21 crore in the Q1 March 2008 as against net loss of Rs 14.67 crore in the Q1 March 2007. Net sales rose 38.70% to Rs 299.82 crore in Q1 March 2008 over Q1 March 2007.

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.