The company had reported a net loss of Rs 38.19 crore on a total turnover ofRs 67.10 crore during the last fiscal. The $75 million forms the second andfinal tranche of the payment to Jain to pick up the remaining 75.5 per cent.In November 1999, the company acquired 24.5 per cent stake for aconsideration of $28 million with an option to buy the remaining stake atany time prior to June 30 for an exercise price of $87 million. Since Sifyhad already made a non-refundable deposit of $12 million, the balance amountis $75 million.

Sify is also planning to integrate its Satyamonline portal with IndiaWorldportals once the transaction is over. This is expected to be completed bythe first quarter of fiscal 2001, said the sources. Satyam Infoway officialssaid the company does not want to pay the money in advance as it does notmake any sense. "We will cough up the amount in cash to Jain on June 30,"the officials added. To part-fund the acquisition, Sify had raised fundsfrom overseas market listing its shares at the Nasdaq stock exchange.

The country's largest dotcom deal of Rs 499 crore was announced on November29, 1999. A part of the money was already paid to Rajesh Jain at the timingof entering into a memorandum of understanding (MoU) with IndiaWorld, saidthe officials. "We have transparency in all our deals, though investor worldmay say that these (valuation of the deals) are overvalued. We are provingthat our investments are sensible considering the response to the shareprices," officials added. During fiscal 1999-00, half of Satyam Infoway'srevenue came from dial-up services, 38 per cent from corporate customers whoneed virtual private networks, 7-8 per cent from web designing and hostingand barely five per cent from portals.

Following the company's revision in Internet rate, the number of subscribersis growing rapidly. Recently Satyam announced unlimited Internet access forRs 299 per month. In March 2000, Satyam Infoway had 1.51 lakh dial-upInternet customers - a number that is growing at the rate of 12,000 a month- as opposed to a grand total of 28,000 in March 1999. Its ATM networkallows the company to allocate bandwidth to its corporate and retailcustomers. Satyam Infoway is also planning to set up server firms in thecountry which can be used as data centres. By June-end, according tosources, a server farm would come up in Navi Mumbai.