Xenitis aims to raise funds

After losing money once with its maiden Bengali television news channel "Kolkata TV" a year ago, Kolkata-based low-cost computer (LCC) brand 'Amar PC' maker Xenitis plans to enter the capital market with an initial public offer (IPO).

Sources said, in all likelihood Xenitis was likely to approach private equity (PE) firms first.

The group may be launching another Bengali TV news channel shortly.

Xenitis received a license for a 24-hours new channel from the Centre on October 23 and was working on launch plans.

"It is true that we have received the required license from the Centre for launching a 24-hours news channel in Kolkata. We were trying to get the license for a long time but currently it is all at a nebulous stage. There are no final plans. It would be too premature to conclude anything at this stage, but we genuinely have plans for a new venture", Xenitis chairman Santanu Ghosh said.

Xenitis recently launched its competitively priced motorcycle brand "Global" and aims to make mobile handsets using its volume production business model. The company also plans to make a Rs 1-lakh small car and was reportedly looking at an offer from Andhra Pradesh for setting up the unit there.

Xenitis launched "Kolkata TV" in 2006 and though the channel soon became a market leader, it failed to support the venture after a few months, deciding to pull out to cut its losses.

Xenitis was eyeing group turnover of Rs 1000 crore in 2007-08. It claimed profit of Rs 50 crore during 2006-07.