New Delhi, Mar 14 (UNI) Spice Telecom, a regional mobile operator, will offload 20 per cent equity through an initial public offer in second quarter of the current calendar year.

''We will dilute 20 per cent equity via the offer. The IPO will hit the market somewhere in between April-June this year,'' Hot Spot Vice-Chairman Dilip Modi told reporters on the sidelines of a press conference here today.

Mr Modi added the company will dilute 20 per cent equity into the market, but refuted to divulge further details.

Hot Spot is a retail venture of the Rs 1,000 crore Spice Group.

The company is proposing to offer its shares to NRIs besides qualified institutional buyers, non-institutional investors and retail investors and has received the approval of Foreign Investment Promotion Board (FIPB).

After the proposed issue, the foreign holding in the company would increase to 74 per cent of the total post-issue equity capital, from the present 73.78 per cent.

According to the current norms, FDI is permitted up to 49 per cent in the telecom sector under the automatic route and up to 74 per cent with prior approval of FIPB.

Spice Telecom seeks to utilise the proceeds from the IPO to further expand its operations in the telecom sector.

Spice Telecom operates in two circles -- Karnataka and Punjab -- with a total subscriber base of around 1.9 million.

UNI