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US major Monsanto Company plans to hike its stake in the Indian arm by buying back 328,000 equity shares to 75 per cent at a maximum price of Rs 575 per share.
At present, Monsanto Company directly holds 18.55 per cent stake in Monsanto India while Monsanto Holdings Private Ltd holds 21.03 per cent stake and Bretco Holdings (Mauritius) another 32.77 per cent, sources said in New Delhi on Tuesday.
Thus, the total shareholding of the parent holding companies at present in Monsanto India is 72.15 per cent and the proposal is for hiking this to 75 per cent.
The Foreign Investment Promotion Board is believed to have given Monsanto Company permission for the proposed share buyback, sources added.
The total investment by the US parent in the proposed buyback is expected to be over Rs 18 crore (Rs 180 million).
Monsanto India has a foreign currency approval to manufacture agro chemicals and to integrate the seeds business of the parent company in India.