5 FDI proposals worth Rs 6,050 crore get cleared

Government on Thursday approved five foreign investment proposals involving an inflow of Rs 6,050 crore (Rs 60.5 billion), including a Rs 5,000-crore (Rs 50-billion) plan of Cadila Healthcare for fresh equity infusion.

Cadila will infuse equity of up to Rs 5,000 crore (Rs 50 billion) through issue of shares to QIBs through Qualified Institutional Placement for expansion.

"Based on the recommendations of Foreign Investment Promotion Board in its meeting held on December 21, the government has approved five proposals of foreign direct investment amounting to Rs 6,050.10 crore (Rs 60.5 billion)," an official statement said.

The other major proposal approved was of Recipharm Participation BV for incorporating a wholly-owned subsidiary in India.

The pharma firm's proposal worth Rs 1,050 crore (Rs 10.5 billion) also included the WoS buying out promoter stake in Nitin Lifesciences and increasing foreign equity to 74 per cent.

Also approved was Buimerc Core Investments Pvt Ltd's proposal for transferring of 100 per cent equity shares of non-resident Indian investors and Resident Investors to Buimerc Corporation FZE.

The proposal involves Rs 10 lakh (Rs 1 million) of foreign direct investment.     

The government also approved Health Media Publishing Pvt Ltd's proposal to transfer its 99.90 per cent shares by NRI Ajit Patel to Wellness Technology and Media Ptv Ltd, UK.

The FIPB, chaired by Economic Affairs Secretary Shaktikanta Das, however deferred six FDI proposals.        

These include the proposal of Raheja QBE General Insurance Company for transfer of 23 per cent equity held by Prism Cement to QBE Asia Pacific Holdings Ltd, Hong Kong, thereby increasing the foreign shareholding in the company from 26 per cent to 49 per cent.

The proposal of Holcim (India) for acquisition of 24 per cent shares by Ambuja Cements Ltd in its holding company Holcim (India) Pvt Ltd, from the latter's holding company Holderind Investments Ltd and subsequent reverse merger through a share swap was also deferred.

The other proposals which were deferred include HSBC Securities and Capital Markets (India) Pvt Ltd, Equitas Holdings Private Ltd and mining firm Gulf Quarry General Trading.

The FIPB also rejected two proposals -- Nigeria's Mokeme Chiwetal Izuchukwu and Lanarth Developers Pvt Ltd.