Satyam Infoway Ltd-(Nasdaq:SIFY) Message Board

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Technology Stocks : Satyam Infoway Ltd-(Nasdaq:SIFY)

SIFY 11.62

+0.6%

Oct 31 9:30 AM EST

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To: IngotWeTrust who wrote (1438)	6/29/2000 8:37:00 AM
From: Nandu	Read Replies (1) of 1471

Here you go, ole. walletwatch.com Sify to hit the domestic IPO market! After its listing in the Nasdaq Satyam Infoway Ltd., has decided to go in for an equity offering in the Indian capital markets. The size of the issue is yet to be decided and even though September is the month that is most probable for the issue, the prevailing market conditions would play an important part in it. As per the Sebi guidelines only companies with a track record of profit for three consecutive years can tap the Indian capital markets. For companies which do not satisfy the three-year profit record, the SEBI guidelines state that if the issue of shares is greater than five times the existing net worth of these companies, the entire issue should be book built. Of this, 60 per cent must be taken by qualified investment bodies (QIBs) while the balance can be held by other investors. Mutual funds, foreign institutional investors and other high net worth investors are categorised as QIBs. According to Mr.Ramaraj a clarification has already been issued by the Sebi officials stating that Sify would qualify for an Indian offering due to its existing FII holding. A domestic issue of shares are required for both funding cash acquisitions in India and to offer an exit route for stock option holders. The company has crossed the subscriber base of 2 lakhs and the browsing rate for its Internet subscribers had increased from 30 minutes on an average per individual per day to 42 minutes. At the end of May, Satyam Infoway's portal had 66 million page views. The international gateway project was however getting delayed due to a delay in the clearances that are required and it had become necessary for the company to go in for tie-ups with international private leased circuits through carriers such as MCI WorldCom. The reliability of IPLCs offset the high cost involved. According to Mr. George Zacharias, President and Chief Operating Officer MCI WorldCom was paid Rs. 85 lakhs for bandwidth. The revenue momentum was being maintained and the company's board of directors would formally meet on July 10 to consider the results for the quarter ended June 30. Revenues from advertisements were to the tune of Rs. 1 crore a month compared to the previous year when revenues were less than 5 per cent of this. Fifty per cent of Sify revenues came from corporates, 45 per cent from Internet access while the balance came from other activities. The turnover of the company as of March 2000 stood at Rs. 67 crores.

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