Modi government clears FDI proposals worth Rs 1,827.24 crore

Source: Economic Times

The Finance Ministry today said it has cleared 12 FDI applications, including that of Ratnakar Bank to raise foreign equity limit to 74 per cent, entailing total investment of Rs 1,827.24 crore.

The Rs 10,000-crore capital raising proposal of HDFC Bank has been refered to the Cabinet Committee on Economic Affairs (CCEA), the ministry said.

“Based on the recommendations of Foreign Investment Promotion Board (FIPB)… Government has approved 12 proposals of foreign direct investment amounting to Rs 1,827.24 crore,” it said.

Ratnakar Bank has received clearance “for an Initial Public Offer (IPO) of its equity shares to residents, non-residents … thereby increasing the aggregate foreign investment from the approved 55 per cent to 74 per cent”.

The proposal amounts to Rs 1,150 crore. The 12 foreign direct investment (FDI) proposals were cleared by the FIPB today.

HDFC Bank is seeking government’s nod for issuance of equity shares totalling Rs 10,000 crore to NRIs/FIIs/FPIs subject to the aggregate foreign shareholding not exceeding 74 per cent of the post issue paid up capital.

FDI proposals involving amount of over Rs 1,200 crore are cleared by CCEA.

The other FDI proposals cleared by FIPB include that of Tevapharm India (Rs 422 crore), Novartis Healthcare, and Fresenius Kabi India (Rs 198.8 crore).

The FIPB also rejected four proposals and deferred decision on 12. Among those on which decision has been deferred include that of two Pakistani citizens.

Pakistani citizens Maham Nayyar and Sahar Nayyar had approached the FIPB to import finished carpets from Dubai and other countries and trade it in India.

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