as

Sun TV to make a foray into internet, e-commerce

The Sun Television group will float a company to make a foray into Internet and e-commerce services and has plans to set up an Internet gateway by next year. According to sources, the group is putting in place a cable network in Chennai to create an Internet backbone and plans to cover the entire gamut of communications business in the near future.

“The group is aiming to offer value-added Internet services to the masses by next year,” the sources said and added, “the group also wants to provide services which will be cheaper than ice creams and e-commerce will be an integral part of it.” A housewife will be charged a pittance for placing orders with neighbourhood shops through the Net, the sources said added that the group plans to increase business volumes by offering competitively priced services. Talks are also on with several hardware manufacturers to make cheaper terminals that can be used for e-mail and for surfing the Net,the sources said.

Sun TV plans to raise Rs 1,200 crore through an initial public offering(IPO). There will be 25 per cent equity dilution and the issue will be through the book-building process. The IPO is slated for June and the face value and the premium band are being worked out. Kotak Mahindra Capital has been appointed lead manager and advisor to the issue. The company has been growing at over 40 per cent since its inception in 1991-92. Sun TV has signed agreements with a Hong Kong-based networking company which will provide the backbone and with Singapore Telecom (Sing Tell) for bandwidth.