Govt Clears 16 FDI Proposals Worth 6751 Crore

Government seems to be quite serious about reviving the growth and investment cycle in the country. In this quest government has cleared 16 proposals of Foreign Direct Investment (FDI) of around Rs 6750.86 crore. These proposals have been proposed by Foreign Investment Promotion Board (FIPB) in May 2015.

These proposals include Torrent Pharmaceuticals’ bid to increase FII investment from 13.09% to 35% worth Rs 3000 crore, Star India’s proposal for further issuance and transfer of shares to its foreign collaborator and acquisition of the broadcasting business of another Indian company engaged in broadcasting sector on a slump sale basis worth Rs 2500 crore and Syngene International’s proposal for raising the foreign investment to 44% from the approved percentage of 10% by way of IPO of equity shares to FIIs, FPIs and NRIs.

On the other hand 21 proposals have been deferred by government. Important proposals that have been deferred include proposal of Kotak Mahindra Bank  to increase the aggregate foreign investment to 55% pursuant to a merger between ING Vyasa and Kotak, proposal of Eros International Media for making  downstream investment by way of acquisition of shares of an Indian company for non-cash consideration and proposals of Den networks and Hathway Cable and Datacom to increase foreign investment limit for FIIs, FPIs, etc. from 49% to 74%.

Government has rejected 6 proposals that relates to pharma, construction and venture capital funds. Important proposals to be rejected are Strides Arcolab proposal for issuing shares to non-resident and resident equity shareholders of Shasun Pharmaceuticals under a scheme of merger and Proposal of IIFL Holdings for increasing the foreign equity from 54.7% to 100% by way of issuing shares to FIIs.