In a bid to increase its presence in the telecom sector, Spice Mobiles, part of BK Modi's Spice group is amalgamating two of its mobile ventures. Spice Mobility, the new entity would be formed with the merger of Spice Mobiles with the unlisted Spice Televentures. The new entity is expected to invest close to Rs. 1,000 crore in the period of next two years.

As per the valuations done by BSR & Co, Spice Mobile's stocks are worth Rs. 109 per share while that of Spice Televentures is Rs. 862 per share. The board has agreed to swap ratio of 791 shares of Spice Mobiles for every 100 share held in Spice Televentures. The move comes just a year and half after Modi sold off his telecom service business to Birla owned Idea Cellular for more than Rs. 2,500 crore.

Now with a leaner presence in telecom handset business, Modi is trying to increase and strengthen the company's position. With the merger taking place, the company would have better financial stability and it would have more access to capital.

As on December 30, Spice Mobiles had revenue of Rs 702 crore for first three quarters as against Rs 374.5 crore last fiscal.