Finance ministry clears Rs2,858-cr FDI; seeks CCEA nod for Rs3,500-cr reverse capital flow

The government has approved 10 foreign direct investment proposals, including six pharmaceutical companies, involving investments totalling Rs2,857.83 crore.

At the same time, the finance ministry on Tuesday asked the Cabinet Committee on Economic Affairs (CCEA) to consider a proposal by Ambuja Cements Ltd for the acquisition of 24 per cent shares in its holding company, Holcim (India) Pvt Ltd, from the latter's holding company Holderind Investments Ltd (NR) and subsequent reverse merger through a share swap, which would involve an outflow of Rs3,500 crore.

The finance ministry on Tuesday accorded approval to ten FDI proposals based on the recommendations of the Foreign Investment Promotion Board (FIPB), which include mostly brown field investment, including several pharmaceutical companies.

These include Air Works India (Engineering) Private Limited's (Mumbai) proposal for increasing foreign investment resulting in increase of indirect FDI in its wholly owned subsidiary engaged in aircraft management services and air charter services as non-scheduled operators permit.

The FDI proposals approved include foreign investment in six pharmaceutical companies, including Alere Medical Private Limited (New Delhi), Koye Pharmaceuticals Private Limited (Mumbai), Ipca Laboratories Limited (Mumbai), Reckitt Benckiser (India) Limited, Biogenomics Limited and Syngene International Limited (Bangalore). 

Alere Medical Private Limited has been allowed to merge SD Bio Standard Diagnostics Pvt Ltd.

Koye Pharmaceuticals Private Limited, a brownfield Pharmaceuticals company, has been allowed to issue additional 6,060 cumulative convertible preference shares constituting up to 25.97 per cent of the share capital of the company on a post-issuance and fully diluted basis to a new foreign investor. Post the issue of ESOP shares, the new foreign investor will hold 25 per cent of the paid-up capital on a fully diluted basis.

Ipca Laboratories Limited, a listed company engaged in the pharmaceutical sector, has been allowed FII investment up to 35 per cent in the company.

Reckitt Benckiser (India) Limited, a wholly-owned subsidiary of the Reckitt group, has been allowed to acquire 24.887 per cent paid-up share capital of Reckitt Benckiser Healthcare India Limited from its foreign investor Reckitt Benckiser (Singapore) Pte Ltd.

Biogenomics Limited has been granted permission to increase foreign equity from 74 per cent to 92.28 per cent of the existing foreign shareholders by further infusion of capital amounting to Rs75 crore.

Syngene International Limited, an Indian pharma company engaged in contract R&D and manufacturing to third parties, has been allowed 10 per cent foreign participation in its equity share capital.

The finance ministry deferred a decision on 18 proposal, including the lone retail sector applicant Wacoal International Hong Kong Co Ltd to set up a joint venture with 51 per cent equity participation for undertaking of single brand retail trading of products under the brand name 'Wacoal'. Remaining 49 per cent of the equity share capital will be held by an Indian JV partner

In the aviation sector, the existing shareholders of Quickjet Cargo Airlines Pvt Ltd, Bangalore, has sought permission to issue equity shares to Farnair Switzerland AG Pvt Ltd as also issue fresh shares, thereby increasing the foreign shareholding from 62.34 per cent to 74 per cent.

Luvenus Jewellery Pte Ltd has sought approval for setting up a wholly-owned subsidiary retail outlet at the Mumbai International Airport. It has also sought exemption from the mandatory 30 per cent sourcing of goods from India.

Mehul Sehgal of Delhi has sought approval for setting up a limited liability partnership (LLP) company in India to carry out the business of processing and trading of steel with foreign capital contribution of 98 per cent Rellek Group LLC.

ASV Europa Security Private Limited, Secunderabad, has sought permission to receive 49 per cent foreign investment in Security Services and Man Power recruitment & training services by way of transfer of shares from its current Indian shareholder.

Compatel India Private Limited, Mumbai, a new telecom company, has sought permission for foreign equity participation of 100 per cent.

Knowlarity Communications Private Limited, Delhi, engaged in providing telecom services, has sought permission to transfer equity shares from existing investors as also issue fresh equity shares and CCPS to existing and new investor, which would raise its FDI stake from 56.14 per cent to 80.97 per cent.

Thaicom Public Company Limited, Thailand has sought approval for setting up a wholly owned subsidiary for providing leasing of satellite space for video broadcasting DSNG, VSAT services.

Augere Wireless Broadband India Private Limited, New Delhi, an Indian telecom company, has sought to increase foreign equity participation from 74 per cent to 100 per cent.

India Value Fund IV, (IVF IV) is seeking FIPB approval for making investment in an Atria Convergence Technologies Pvt Ltd (ACT), an Indian company engaged in providing internet services (ISP). IVF IV and IVF III-A together proposes to invest in the capital of ACT in excess of 49 per cent up to 100 per cent by subscribing to equity/compulsorily convertible preference shares/fully convertible debentures.

It also proposes to make downstream investment in companies engaged in ISP and Multi Subscriber Operator (MSO) activities.

Chorus Call Inc, USA, has sought approval for increasing foreign equity from 74 per cent to 100 p[er cent in Chorus Call Conferencing Services India Private Limited, a company engaged in providing services like transmission of voice, video and data.

O-zone Networks Private Limited, Delhi, a company engaged in telecom sector with 33.33 per cent existing FDI from AL Telecom Holdings (India) Limited, Cyprus, has sought permission to accept up to 100 per cent foreign investment from Ozone BV, Netherlands by way of purchase of equity share capital from existing foreign and domestic shareholders.

Insight Media City (India) Pvt Ltd has sought permission to up-link and down-link general entertainment channel (non-news category) and up-link and down link news and current affairs channel (news category).

INX Music Private Limited, Mumbai, a company which aggregates and distributes music content for TV channels, having 70.85 per cent indirect foreign investment has sought to merge 9X Jhakaas Marathi Channel and undertake additional activity of broadcasting of a non-news and current affairs channels in various Indian languages under a proposed scheme of arrangement.

Serap India Pvt Ltd, New Delhi has sought permission for the conversion of import payables into equity share capital.

Shah Vibratory LLP, Mumbai has sought approval for 50 per cent foreign participation of National Air Vibratory Company, USA.

Thornton Tomasetti Inc, USA has sought permission to set up a limited liability partnership company to carry out the activities of engineering, design, investigation and analysis services to customers worldwide

YourNest Angel Fund (Trust)  has sought permission to invite up to 49 per cent foreign investment from Tech Entrepreneurship India Company Limited, Mauritius.

Zodius Technology Fund, through its investment manager Avezo Advisors Pvt Ltd, which is a Sebi-registered Category I alterative investment fund, has sought FIPB approval for NRI investment in the company.

Sharekhan Limited and Human Value developers Pvt Ltd (Baring Private Equity Asia IV Mauritius Holdings Limited) has sought approval for the transfer of CCDs and CCPs of their companies held by IDFC limited to Baring Private Equity Asia IV Mauritius Holdings Limited.

FIPB did not consider the proposal of NovaLead Pharma Private Limited, Pune for the sale of a part of existing shareholder Kotak India Growth Fund's share in the company to another existing shareholder, Boxmoor (Mauritius) Ltd, and to allot additional equity shares to Boxmoor, and SNC-Lavalin Mauritius Limited's application seeking permission to convert CCPS into equity shares held in Piramal Roads Infra Private Limited, an Indian investing cum operating company and to increase its shareholding from 10 per cent to 17 per cent.

The following proposals, including the proposal of Continental Traffic Service Global Technologies Private Limited, Chennai for capitalisation of pre-incorporation expenses and to allot shares to the non-resident investor/entity Continental Traffic Service Inc, USA;

A proposal by Beloorbayir Biotech Limited, Bangalore, with 22.55 per cent foreign investment (on a fully diluted basis) by India Agri Business Fund Ltd, Mauritius to acquire, by way of merger, the entire share capital of Bayir Chemicals India Private Limited, Bangalore and Sneha Nutura India Private Limited, both companies engaged in pharmaceuticals sector;

Proposal of Continental Hospitals Ltd has sought for allotment of shares to NRI promoters (Dr Gurunath Reddy and Mrs Vasu Reddy) and Paradigm Corporation Private Ltd (PCPL) for cash and/or for consideration other than cash; and

A proposal of Agappe Diagnostics Limited (ADL Agappe Diagnostics Limited (ADL) for acquisition of 20.24 per cent of its fully paid-up equity shares of ADL by Sycamore Holdings Limited, Mauritius has been withdrawn.