Corporate Results of over 2500 companies Wednesday, November 17, 1999
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Guj Net plans to offer 50% equity via IPO 

Vandana Saxena  
Mumbai, Nov 16: GujNet, the proposed joint venture between the Gujarat-based Action Associates (AAPL), Cisco and Convoke Communication Corporation of Canada (CCC), plans to offer around 50 per cent equity through its initial public offering (IPO). The IPO will hit the market after a year, AACL chairman and managing director Ushakant Shah said.

The three partners of the company signed a memorandum of understanding (MoU) on Tuesday.

Of the total Rs 3,000 crore investment envisaged in the company, the two promoters-AAPL and CCC -- would contribute Rs 150 crore each towards Rs 1500 crore of the equity. The third partner Cisco, which would primarily be the technology supplier, would have its equity contribution through the technology contribution, Shah said. Detailed company structure is yet to be worked out, he said. Some of the services the company would provide include state-of-the-art facilities for e-commerce, call centres, medical transcription centres, Internet and video-on-demand, he added. "As a IT infrastructure company, we will not enter internet services directly," he said, adding, Internet service providers would be their clients.

Since the company would cater to diversified needs of its clients, it was necessary to involve the companies having expertise in different areas, he said. Convoke Communications is an IT firm which specialises in providing corporate Internet solutions including high-speed access services, Internet development designs and solutions for improving internal communications.Cisco, team partner of Convoke, has experience in the architect and development of large network, Shah said.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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