Dishnet raises $70mn through private placement
21-03-2000 17:18:41
Internet service provider Dishnet DSL Ltd said it has raised $70mn through a private placement of equity with a clutch of overseas investors, including U.S.-based communications firms, Covad Communications Group Inc and CenturyTel. "In addition to Covad and CenturyTel, the investors include HSBC Private Equity Funds, Citicorp International Finance Corporation and IQ Investments Ltd," the firm said in a statement in Chennai. Last week, CenturyTel Inc said it had acquired a 6.67% stake in Dishnet through a $22.9mn investment.
Dishnet, a part of the Sterling Infotech group of companies, launched India's first digital subscriber line (DSL) technology-based Internet service, in January. Its dial-up access service covers 25 Indian cities and has over 62,000 subscribers. The private ISP also said it had tied up with Covad Communications for licensed use of the firm's proprietary operational support system in India.
"This operational support system, which has been developed and used by Covad in the U.S., is based on web interfaces and is highly automated and should enable Dishnet DSL to scale its business rapidly," the firm added. Dishnet plans to raise up to $350mn through an issue of 1.6mn American Depositary Receipts (ADRs), later this year.
Source: Reuters via Probity
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