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Spice Mobility - Will it create any difference??

Created by : Namrata Pathak, Accounts Manager, American Express  | 07 07 2010 11:20:10 +0000
Industry : Communications and NetworkingFunctional Area : M&A(Corporate Finance)
Keywords : mobiles telecommunications mobile phones communication spice mobiles spice mobility
Activity:  325 views;  last activity : 07 08 2010 09:55:16 +0000

In a significant move to consolidate its telecom business The Spice Group announced the merging of its mobile retail business Spice Televentures with the handset division Spice Mobiles.

spice

The merger would create a new entity, named Spice Mobility. This is seen as part of a plan to consolidate the group’s telecom businesses.

So, will this merger create any impact in the industry?

  
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I think this strategy will work. The reverse merger will result in a cash flow of Rs 300 crore (through sale of treasury shares) and will be utilised for financing expansion of its mobile retail outlets in the country as well as acquisitions.

The merger will result in 4.2 crore treasury shares, of which 3.2 crore will be placed in the market, helping the company raise about Rs 300 crore. The remaining one crore would be kept for the employees.

Thus this move will create some difference....
By Namrata Pathak, Accounts Manager, American Express  07 07 2010 11:24:06 +0000
 
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I am in agreement with you on this Namrata. The Mobile market is growing thick and fast in our country and as of now is in excess of 370 million users and growing.

Keeping this in mind the moov is right move to have larger share of the market.
By Rathin Deb, Freelance Retail Consultant  | 07 08 2010 09:55:16 +0000
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Hello Namrata, Yes. It is advantages for them to connect people and give better service. Company also consolidate  their position and to increase the business by providing under one roof.

K Rajagopalan.
By k Rajagopalan, Area Manager, Amitex Polymers (P) Ltd.  | 07 08 2010 08:23:41 +0000
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definitely yes, spice mobile is already started price war in mobile market, launched good handset specially for Indian market, and like tata tele services and reliance info com spice is new vendor providing both handset and operator service , now spice has license for its service in maximum regions, so its sure spice mobility will create some more adventure in this market.


By hitesh kumar yadav, Quality control Engineer, HM Pipes Pvt. Ltd  | 07 07 2010 13:09:23 +0000
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Any merger, as desired is done to have Synergy work for the combined entity for better profitability & optimum utilization of resources. Therefore it would also definitely work for SPICE Mobility
By Rakesh chandra Goyal, Senior Consultant, AVRMS  | 07 07 2010 12:47:06 +0000
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Yes,

From the company prospective, this merger will work and make a impact on market.
By Vikram Gaur, State - Convener (IT), Haryana, Bharatiya Janata Party  | 07 07 2010 11:30:45 +0000
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