BK Modi is a busy man. His mobile handset manufacturing company, Spice Mobile, is reportedly in talks with Sony Ericsson for a sale, at around Rs. 80-100 per share, valuing the company at Rs. 700 crore. Modi owns 64 percent of Spice Mobile, which values his stake at Rs. 448 crores. This price is almost 3-4 times the market price (BSE) of the share, though, given the news, the share price is rising fast. No prizes for guessing the date on which the news first came out.

The company, though, has denied knowledge of “any disinvestment decision by any of the stakeholder”. Readers will remember that recently, Modi sold his 40.8 percent stake in Spice Communications to Idea Cellular for Rs. 2200 crore. Spice Mobile had launched a Movie Phone at the 3GSM summit in Barcelona this year, and followed it up recently with the launch of a 3G enabled phone. Recently, the company also launched a Dual SIM (both GSM) PDA handset.

Spice Mobile is setting up a manufacturing facility in Baddi in Himachal Pradesh. Sony Ericsson is at number 3 in the India market, with Nokia and Samsung at number 1 and 2 respectively, according to ET.

At the same time, MediaNama has learned that Cellebrum (Spice Mobile VAS) filed for an IPO recently, which Cellebrum executives at VAS Asia 2008 confirmed to us. From what we’re told, the company is planning to list within the next seven months. We’ll have more details from the DRHP later today.

You may download the Draft Red Herring Prospectus here (496 pages, PDF ~ 4MB)