Spice Mobiles announced that it will merge with parent firm, Spice televentures as part of its plan to consolidate the group's telecom businesses. The merger will result in creation of new entity, Spice Mobility.
"Spice Mobiles will reverse-merge with Spice Televentures Pvt Ltd, and the new venture will be called Spice Mobility," said Spice Group chairman BK Modi.
The merger will create 4.2 crore treasury shares, out of which one crore would be kept for employees, while the rest of the 3.2-crore equity would be put in the market to raise about Rs 300 crore, he added.
As per the March quarter shareholding pattern available on the BSE, Spice Televentures Pvt Ltd held 63.25 per cent stake in Spice Mobiles.