Rediff plans Nasdaq listing by 2000
Leading portal in India Rediff on the Net is planning a listing on the Nasdaq by the middle or late next year. Speaking to Reuters, Ajit Balakrishnan, founder and chairman of however declined to comment on the size of the issue.
Rediff on the net popularly known as Rediff, started operations three years ago primarily as a news and information site. It is now tapping the net to sell an array of merchandise including books, music, gifts and other speciality items.
Rediff is an off shoot of one of the top 10 advertising agencies in India, Rediffusion - Dentsu, Young and Rubicam. Microchip maker Intel Corp, venture capital firm Draper International and investment firm Warburg Pincus together hold 40% equity stake in the company.
Mr. Balakrishnan said that the IPO is aimed at meeting the long-term capital requirements of the firm, and that he is under pressure from investment bankers to rush the IPO. According to him, the company is ensuring that it produces predictable results quarter by quarter before it actually goes public. Rediff is planning to seek a listing on an Indian stock exchange after the U.S. offering. The company is talking about investing close to US$75-100mn in the next 18 months. Like most other firms in this line of business Rediff too is not expecting to become profitable for a few more years and is expecting losses for another two years. Industry officials estimate the company's revenues to rise to about US$7mn in 1999-2000 (April-March), up from US$2-$3mn recorded in the previous year.
Rediff plans to earn 50% of its annual revenues from e-commerce, 30 % from building websites and the balance from advertising. Last year, about 60 % of Rediff's revenues came from building websites, 30 % from advertising and the rest from e-commerce.
(Probity) |
