Saturday, July 12, 2008

Spice Mobile rings on takeover buzz

Spice Mobile hit 10% upper circuit at Rs 24.95 on reports Japanese phone maker Sony Ericsson is talks to acquire the handset company.
The stock had a 52-week high of Rs 35.90 on 29 May 2008 and a 52-week low of Rs 13.95 on 2 August 2007.
The company has an equity capital of Rs 22.39 crore. Face value per share is Rs 3.
The current price of Rs 24.95 discounts its Q1 March 2008 annualised EPS of Rs 2.11, by a PE multiple of 11.82.
The BK Modi group, which owns 63.2 % stake in Spice, had demanded Rs 80-100 a share, which values Spice Mobile at around Rs 700 crore, the report said.
The company’s net profit declined 65.2% to Rs 3.93 crore on 84.5% rise in sales to Rs 127.24 crore in Q1 March 2008 over Q1 March 2007.
Spice Mobile is a part of Spice Corp, a $ 2 billion multi-faceted group, previously known as MCorp Global. Spice Mobile phones made its entry two years ago in the Indian market targeting the entry-level handset segment. Debuting with handsets targeted at the entry-level segment, today, the brand is growing rapidly and has a bouquet of offerings targeting entry, mid & premium segments.

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