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IPO

SPICE Telecom IPO

Price band 41-46.
Size: About 520 Cr.
Dates: 25-27 June.

I would say investors should avoid this issue.
1) Spice has been constantly making losses in all the telecom circles it operates.
2) It has the 8th largest network… which makes it too small for any strategic investments.
3) The company has not listed even a single move with which it plans to overturn its ailing fortunes.
4) The Promoters (Modi and Telekom Malaysia) are not very serious about the company. They wanted to sell it to Idea (Birla) , but the merger failed due to greediness of Modis. Hence to earn quick bucks Spice is going for this IPO.
5) NSE has refused to list its shares (but it has the permission from BSE)

12 replies on “SPICE Telecom IPO”

I didn’t know idea merger failed!!! I guess Spice has been waiting for someone to buy them out .. .since it didn’t happen so lets take some money from market !! 😉 you are right on it!!

Ankur,
Are you qualified to comment about this IPO, from your comments it is clear that you are an amateur investor who has NO Understanding of the Public Markets.

Perhaps, if you were educated and experienced you would note that the fundamentals of the SPICE IPO are very in line with India Telecom Dynamics.

The IPO was on well before IDEA tried to snatch up SPICE at a very low price. IDEA was trying to get SPICE cheaplu because of the valuable circles.

In my circle (Which is Finance Professionals earning more than 50 lacs per annum) it seems you ANKUR have made a wrong assumption and do not understand Basic Big Business.

Do everyone a favor Ankur, only speak about something you know in a well thought out manner. Your incorrrect and vague opinion in this forum represents all that is wrong about IPO investing.

For every buyer who thinks the stock is undervalued there is a seller who thinks the stocks is overvalued. and that is how Stock Markets works.

//Your incorrrect and vague opinion//
Dude I do agree that i do not earn even a 1/10 of what you earn… but can you point out if I have ever published a wrong data/figure?
I take misinformation and false propaganda very seriously, so please do not slander me without having any sold grounds.

//Are you qualified to comment about this IPO, //
As I have clearly and repeatedly mentioned http://shocking.wordpress.com/2006/11/27/stock-advice/
“The opinions expressed here are personal views of a private citizen who has no formal training in Finance or Management.”

Finally, since you think so highly about Spice… can I ask you in which year/decade do you think Spice telecom plans will become profitable?

sorry dude u will have to illuminate me on this… my hunch is that Modi has never been good for the investors.

I could find only 4 listings in modi’s name
Modi Rubber Ltd.
Modi Hoover International Ltd.
Modi Industries Ltd.
Anil Modi Oil Industries Ltd.

and all of them are either not being traded or lie with the junk shares.

@prax…
not feeling sleepy 🙁

ya as u rightly pointed out none of the modi enterprises have made any money for the shareholders… infact the management is known to line their own pocket at the expense of the investors… have u noticed that even though their companies do not do well.. the promoters grow rich day by day?
it surely was a takeover target… but the question remains at what price?

thanks for adding this new insight and the references

I TOLD YOU SO, ANKUR!!!

PLEASE LET YOUR READERS KNOW THAT YOU WERE WRONG ON THIS IPO ISSUE & SAY 500 TIMES ‘I, Ankur, Should not make Negative comments about IPO’s that I clearly know nothing about’

r u crazy?
inspite of all the bullish sentiments and the market zooming to its all time high, the IPO is trading at a 16% gains? leave alone the listing gains… if i had blindly picked up any blue chip from the secondary in June… i would have made much more money….

not to mention that because of the poor fundamentals none of the mutual funds (even the telecom/infrastructure specific ones) have not picked up any considerable stake in the company… and the long term viability of the company is questionable.

i might not have a degree in finance.. but in the past 1.5 years, every month I have consistently picked up the best IPO every month… exception being the Orbit Corporation…(apr 2007) And except for Cairn… I have never made any loss in any IPO.

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