Calcutta, April 21: Caltiger.com of Patriot Automation Projects Ltd, thefirst company to provide free Internet service in India, is going ahead witha third round of divestment and is also set to buy a nationwide telecomnetworked company to better its infrastructure network for Internet access.This was announced by the president of Caltiger.com, Joe Silva, at a pressconference after the inauguration of the new corporate office by Australiancricket captain Steve Waugh.The company has floated a venture capital fund with a Rs 30 crore corpus. Ithas decided to provide support to 26 startups during the last six monthsworth Rs 20 crore.
Caltiger, which has dropped its plan to rename itself as Freetiger.com, isalso gearing up to introduce a new technology -- cellwell -- for providingtelephone-free Internet services.
Silva said that they are currently in discussion with different companiesfor divestment of its stake. Caltiger has valued itself at Rs 1,000 crore,up from Rs 600 crore during the second round of divestment about four monthsback.
"This time we are looking at international investors and we would like todivest a stake in between 10 and 20 per cent. However, nothing has beenfinalised yet. At present, our stake is around 47 per cent and we would liketo bring it down further," he said.
City-based sharebroker Smifs was the first to take up a stake of 10 percent, followed by TransAtlantic with 20 per cent.Caltiger.com has alsosigned agreements for entering two overseas markets, Sri Lanka andPhillipines. "There would a local player holding the majority stake. Wewould be holding a minority stake but we will provide the necessarytechnology and also the brandname," Silva said.
The company's venture capital fund has sanctioned Rs 20 crore for 26projects out of which it has disbursed Rs 7 crore. Silva said that all thesestartups are based in the city and Caltiger's stake in these are around25-30 per cent.
On the Internet services in the country, Silva said that the major hindranceis the high telephone charges. As a solution, Caltiger would be launchingcellwell, a technology based on corDECT developed by Ashok Jhunjhunwala ofIndian Institute of Technology, Chennai.
Caltiger, which has about 1.2 lakh subsribers, is investing around Rs 8crore during the next four months and the services would be available inHyderabad, Bombay, Bangalore and Calcutta.
"A small antennae costing around Rs 3,000 would be attached your computerand there would be earth stations all over the city which would beinterconnected by wireless communication," Silva explained.
Next week, the company would also clinch a deal for Rs 150 crore to buy acountrywide telecom network. Silva assured of a official declaration butdeclined to name the company.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.