Spice Mobility showing a lot of spice!
Spice Mobility is showing some great amount of volume and movement today morning. Though it opened muted at Rs22.10, it soon surged to Rs.24.30, its current price and intra day high point, up almost 12%. Volumes are up over 7.5 times.
This sudden spike up on the counter is a reaction to the company announcing today morning that its subsidiary, Spice Digital has acquired 26% stake in Creative Functionapps Lab, which is engaged in the business of telecom and mobile internet and developing innovative products and solutions for the next generation telecom networks. The products and solutions of the company range from analytics based telecom network performance and monitoring to mobile and internet consumer services.
Consequent to the said acquisition, Creative Functionapps has become an Associate Company’ of Spice Digital.
This BK Modi group is a mobile handset and related services firm, which has twice changed its name reverting to its previous name Spice Mobility recently. It has been trying to position itself as a mobile internet firm but it still derives a large chunk of its revenues from its handsets business.
With a customer base of over 15 million and an annual volume of over 6 million devices, Spice Mobility claims to have a market share of nearly 4-5% of the Indian mobile devices market. With business operations spanning across India, Nepal, Bangladesh, Uganda, Tanzania, Zimbabwe and Sri Lanka, Spice is now expanding its geographical presence from Ivory Coast to Indonesia.
The company ends its year on 30th June and for Q3March 2015, the company had a consolidated net loss of Rs.71 crore.