Source - Money Control
The NSE has turned down the Spice Telecom's plea for listing on the grounds that its accumulated losses have exceeded the networth, CNBC-TV18 reports.
The RHP that the company has filed right now and on the basis of which it is doing the road show now, only mentions the BSE and not the NSE. However, earlier, the DRHP that the company had filed in December, had said that they are looking at approvals from both, the BSE and the NSE.
The company did talk about this and they have said that the NSE has more stringent listing norms; the NSE has left the company out of the listing more due to the company's accumulated losses, than on account of what its networth is right now.
From 2002, the company has been doing erratic; profits largely helped by their other incomes. Put together, the losses come to about Rs 69 crores. If they are a June-ending company, they have filed only from July to September and if you analyse the numbers, it is again, approximately Rs 76 crores coming into this year.
However, investment bankers feel that this is not going to be a deterrant due to two reasons. One, there would be another player in the telecom sector, one which has a strong sector in two sectors - Punjab and Karnataka and needs money to go into the new trajectory of growth. Besides, it's also attractively priced. And hence, the deal is likely to go through; the low networth will not mar the IPO's prospects, they feel.
