An unsuccessful stint in airline operations has forced Elbee to consider the sale of the aircraft, each with a cargo capacity of 5.5 tonnes. Experts, however, believe that Elbee's expectations on the sales realisation may be a bit too ambitious.

The realised amount would be utilised to retire the company's debt and may bring down the interest amount by around Rs 1.5 crore, to Rs 1.7 crore per annum, Elbee chairman and managing director Sandip Shah told The Financial Express.

Elbee has embarked upon a major e-commerce initiative by virtue of a tie-up with over 70 portals. Elbee would manage their total product supply as well as payments through a tie-up with HDFC Bank.

"We are currently generating a revenue of Rs 35 lakh per month through these portals. We anticipate much higher revenue, but the same would take some time," Mr.Shah said.

As per the Nasscom estimates, e-commerce business is estimated to be around Rs 10,000 crore by 2003 and "by that yardstick it would be boom time for companies like us", Mr Shah added.

Meanwhile, the company is currently involved in privately placing its second tranche of 30 lakh equity shares at Rs 140. This would be followed by a proposed preferential allotment of 25 lakh equity shares to the promoters at the same price or more.

The company had earlier privately placed equity shares worth Rs 37 crore with ICICI, UTI and Tata Finance at a price of Rs 171 per share. The first tranche at Rs 171 was placed when the index was above 5000 but the company seems to be finding it difficult with the index now hovering around 4000. The private placement of equity shares would lead to a change in the shareholding pattern, though the promoters stake would increase marginally to 44.57 per cent. The institutional stake is likely to go up to 32 per cent post placement from 19 per cent while public would hold around 24 per cent, down from 36 per cent.