This is the second time that the company will dilute its stake to a financial institution. It also plans to mop up funds from the market through an initial public offering in 2003.

The group, which started a 24-hour Hindi news channel on December 31, 2000, is planning similar channels in English, Bengali, Punjabi and two other regional languages.

India Today executive director G Krishnan said, the group plans to launch a 24-hour business channel by 2002.

The group started with an investment of Rs 60 crore funded through a mix of equity and debt. The company's authorised paid-up capital is Rs 30 crore, of which Rs 12 crore has been paid by ICICI Ltd, for 10 per cent equity which includes premium.

ICICI's pie is paid on the basis of Rs 120 crore valuation before the channel went 24-hour.

According to Mr Krishnan, the company will be diluting its stake further by another 10 per cent to another financial institution. At present, the company is talking to various FIs and the average valuation received is between Rs 220 and 225 crore.

He pointed out that the Bengali channel will be launched in early 2002, followed by a 24-hour English news channel and then a Punjabi channel.The 24-hour business channel will be launched in 2003.

The company's policy on the commercial front is guided by a simple rationale- low rates and high mileage. According to Mr Krishnan, the 10-second spot rates on prime time is Rs 1,800 and Rs 500 on the non-prime slot.