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Sunil Shetty hops on to market-savvy Bollywood bandwagon

Byas Anand in New Delhi

Hindi film artiste Sunil Shetty is planning to kick his way into the information technology or infotech world by floating an entertainment and media dot-com venture.

Besides, the actor, known for his 'action'-oriented lead roles, is also planning to launch an initial public offering or IPO for his chain of departmental stores called Mischief.

Shetty said in New Delhi today that he has already initiated talks with around 20-25 companies from Britain and the Silicon Valley of the US for finalising the modalities of the IT venture. He, however, refused to divulge the names of the parties he was in talks with.

''I expect to finalise the partner within the next two weeks. The venture would basically be in the entertainment and media software sector and would be a business-to-business or B2B a business-to-consumer or B2C venture,'' Shetty added.

''The infotech foray has been in my mind for quite some time but I have generally been busy with my career, films and music album. But now negotiations have already commenced and I expect to finalise the partner shortly and go ahead with the venture soon now,'' he said.

Regarding the IPO, Shetty said the public issue would be launched soon. However, he refused to divulge the quantum of equity to be offered or the money he intended to raise from the offering.

Shetty joins the growing number of film 'stars' who have jumped on the IT and IPO bandwagon. Recently, Ajay Devgan and Kajol had announced a Rs 25 million float for Devgan Entertainment and Software Limited at Rs 10 each.

The post-issue capital will be Rs 100 million with the promoters holding a 75 per cent stake. The proceeds of the issue would be used to fund the company's Internet and portal ventures.

DESL plans to launch an exclusive portal on Indian entertainment which will give exhaustive information about the country's entertainment industry. It will educate surfers on the history, terminology, films, artistes, producers, directors, technicians and places of entertainment. The portal will also enable B2B transactions for people interested in the movie industry.

Showman Subhash Ghai is also reportedly contemplating a mega Rs 4 billion IPO for his production venture Mukta Arts while actor-producer Dheeraj Kumar-promoted Creative Eye is eyeing to raise about Rs 1 billion from the domestic market.

Ghai is currently in the process of fine-tuning plans for Mukta Arts IPO. The issue is expected to hit the market by June-July this year. The proceeds are likely to be utilised for funding the company's expansion plans.

He also said Mukta Arts will take the book building route as it ensures a minimum amount from subscribers.

However, before Mukta Arts hits the market with its IPO, Creative Eye is angling for a slice of the stock market pie. Dheeraj Kumar is reported to have sought the permission of the Securities and Exchange Board of India, the market watchdog and regulator.

Creative Eye not only makes television programmes for various satellite channels and Doordarshan, but had also made tentative forays into sports programme marketing last year before the cricket world cup.

Last year, Mauritius-based foreign investors, a combination of TCW and ICICI, had decided to pick up 28.41 per cent equity stake in Creative Eye. As per the proposal, Creative Eye will allot 481,700 equity shares on preferential basis of Rs 10 each at a premium of Rs 65 per share to TCW and ICICI India Private Equity Fund of Mauritius.

Creative Eye will also issue 204,000 shares of Rs 10 each at a premium of Rs 65 per share to TCW and ICICI India Private Amp Fund of Mauritius.

Creative Eye had sought foreign participation for setting up modern post-production studio and production of mega television serials, involving large working capital, for Indian as well as international market.

The proposal, cleared by the Foreign Investment Promotion Board, envisaged initial foreign investment of about Rs 51.4 million.

UNI

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