S Mobility has spun off its devices business as ‘S Mobile Device Limited’ and has received the approval from the Board of directors to transfer the handset business of the company to S Mobile Device Limited, according to a BSE filing.
This follows a report from the Economic Times earlier in the day, which had quoted a senior executive saying that S Mobility was planning to spin off its handset making division into a subsidiary and receive investment before listing the company in the stock exchange. The report also mentioned that TM Ramakrishnan, who was previously Assistant Vice President at S Mobility (Spice Mobility), has been appointed as the Chief Executive Office (CEO) of S Mobile Devices Limited.
This will be the company’s third subsidiary after its mobile value added services subsidiary Spice Digital* (previously Cellebrum) and device retail subsidiary Spice retail (previously Hotspot), and will work independently with a separate management board like the company’s other subsidiaries, overseen by the holding company S i2i Mobility headed by BK Modi.
Earlier this year, Spice had overhauled its management to consolidate the holdings of promoters, Dr BK Modi and his family into a separate holding company called S i2i Mobility Private Limited which holds 68.65% of S Mobility Limited and was headed by Modi as the Chairman, and Board of Directors comprising of professionals and members of Dr. Modi’s family. This move enabled S Mobility to operate independently and appoint a new CEO, RS Desikan, who was previously the Group CFO & Director Finance at Mastek Limited.
In May 2012, S Mobility’s mobile devices segment had posted a total revenue of Rs 497.5 crore, a 10.6% decline from Q3FY12 and a 6.05% increase from Q4FY11. The segment result or loss before tax and interest, for mobile devices stood at Rs 22.9 crore, as compared to Rs 26.9 crore loss in Q3FY12 and Rs 2.4 crore profit in Q4FY11.
Disclosure: Spice Digital is an advertiser with MediaNama.
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