Financial Times of the United Kingdom will buy a 13.85 per cent equity stake in Business Standard for Rs 14.1 crore (Rs 141 million).

The details of the agreement between the two newspapers will be worked out before Business Standard applies for government approval of the investment under the FDI rules for the print media framed last year, a media release said on Thursday.

The deal puts Business Standard Ltd's valuation at Rs 101.8 crore (Rs 1.018 billion).

This will be the second major foreign investment announced in an Indian newspaper, the first being Henderson's proposed acquisition of a 20 per cent stake in Hindustan Times' HT Media Ltd.

Financial Times will join the Kotak Mahindra group and Great Eastern Shipping as the leading investors in Business Standard.

The company will continue to operate as an independent entity, with its management reporting to the board, on which Financial Times will have appropriate representation.

Financial Times chairman David Bell said: "We are delighted to invest in Business Standard. It is an influential and highly credible publication which is respected inside and outside India. We've been working closely with Business Standard for years and are very pleased to be establishing a more formal relationship with them. This is an important strategic step for the FT as we expand our presence in the important Asian marketplace and extend the FT's reach into a broader international business community."

Business Standard chairman T Thomas said: "Financial Times and Business Standard will work closely together to offer more to Business Standard readers. The investment by FT will help Business Standard to maintain the best editorial standards and achieve faster growth."

Business Standard's Editor & Publisher, T N Ninan said: "We had worked actively to persuade the government to allow FDI in the print media. This investment in Business Standard, by a global newspaper with impeccable credentials and the best editorial and publishing practices, is a vindication of the government's new policy."

Business Standard and the Financial Times began to co-operate a decade ago, through editorial syndication of reports from FT's 300 correspondents worldwide, and has expanded over the years.

Business Standard is published from seven centres in India, and as India's second largest financial newspaper, reaches copies to readers in over 500 towns and cities every day, the release said.

Financial Times is one of the world's leading business newspapers, recognised internationally for its authority, integrity and accuracy. Providing extensive news, comment and analysis, the newspaper is printed in 21 cities across the globe, has a daily circulation of over 460,000 and a readership of more than 1.6 million people worldwide.