Spice Communication, well known telecom service provider, has announced that the Company’s Board of Directors has approved a proposal to sell 875 telecom towers of the company to a tower operating Company.

B.K. Modi, Chairman, Spice Telecommunication said, “The profit from the sale of the towers would be 5 billion rupees.”

The company has also decided to avail borrowing facilities to the tune of $810 million from Hong Kong and Shanghai Banking Corporation (HSBC) and China Development Bank (CDB) for growth and network expansion in the existing telecom circles.

Spice Telecom, the brand name of Spice Communications Limited is presently operating Cellular Phone Services in the states of Punjab and Karnataka.Spice Communications Limited has been promoted by Modi Wellvest Private Limited and Mr. Dilip Modi. The company is among the earliest mobile operators in India. However, Spice could not expand much and continued providing services only in select regions.

The board of directors also approved a proposal to avail borrowing facilities of up to $400 million from Hong Kong and Shanghai Banking Corporation., an official release added.

At 11:15 AM, the share was trading at Rs 64, up by 7% with previous close of Rs. 60. At Stock exchange, 36,56,482 shares exchanged hands on the counter. It touched intraday high of Rs 65 and low of Rs 60.