B K Modi-led Spice Mobiles will merge Spice Televentures (STPL) with itself as part of efforts to consolidate the group's telecom businesses.
The board of directors of Spice Mobiles has approved the merger of STPL, the holding company for the group's telecom businesses, with the company with effect from January 1, 2010.
The board has approved a swap ratio of 7.91 shares of Spice Mobiles for every share held in STPL. Pursuant to shareholder approval the company would issue 16.34 crore equities to the shareholders of STPL. The equity capital of Spice Mobiles post completion of this merger will be 19.09 crore equity shares of Rs 3 each.
For the third quarter ended December 31, 2009, Spice Mobiles reported a net profit of Rs 22.4 crore. It had a loss of Rs 3.4 crore in the year-ago period. The revenue during the quarter stood at Rs 299.8 crore, up from Rs 121 crore in the previous fiscal.