Random Thoughts

IPO- Spice Communication

Spice Communication may see listing gains as it is trading at a premium of about 30% in grey market. However, the stock is not worth of the mid-term investment. It is present in only two out of 23 circles viz Punjab and Karnataka. Both these states have lower average revenue per user (ARPU) compared to more lucrative cirlces of Mumbai and Delhi. Further, Spice has the lowest ARPUs among all the operators in the said two cirlces.

The company currently has negative networth and it has no clue when it would get license to other circles. So, better to look for other scrips like Bharti and Idea for a mid-term to long term horizon.

Labels: Money matters

posted by Ranjit @ 6/22/2007 09:17:00 pm