Government approves three FDI proposals


Based on the recommendations of the Foreign Investment Promotion Board (FIPB) in its 236th Meeting held on 10th June 2016, the Government has approved three (03) FDI proposals involving FDI of Rs. 223.25 crore, and also approved one proposal listed as a tabled item involving an FDI of Rs. 420 crore.


The following three (03) proposals have been approved:

S. No Item No Name of the applicant Gist of the proposal Sector FDI (Rs.  crore)
1 3 M/s Corona Remedies Private Limited A Pharmaceutical company has sought approval for foreign investment of 19.51% by M/s Cydista Ltd., Mauritius by way of:
i. Subscription of compulsorily convertible preference shares of the value of Rs. 100 crore and
ii. Purchase of equity shares from existing shareholders of the value of Rs. 18 crore.
Pharma 118.00
2 11 M/s Ordain Health Care Global Pvt Ltd Approval for the acquisition of certain intellectual property of Klar Sehen Private Limited to certain products, by way of a business transfer on a slump sale basis. Pharma 77.05
3 14 M/s Macmillan Publishers International Ltd, UK Approval has been sought for foreign investment of up to 100% in a new company (‘New Co.)’, proposed to be incorporated in India. Publishing 28.20

The following eight (08) proposals have been deferred:

S. No. Item No Name of the applicant Gist of the proposal Sector
1 2 M/s Oxigen Services Pvt Ltd Approval has been sought  for  removal of clause no. 4,5,7,10 & 11 of FIPB Approval No 10(2012)/168(2011) because the activity of the company is 100% under Automatic Route. Therefore, the terms and conditions mentioned under aforesaid clauses are not applicable on the company. NBFC
2 4 M/s You Broadband India Limited  Post facto approval for acquisition of 9,79,875 equity shares of its downstream company M/s Digital Outsourcing Private Limited (DOPL) in lieu of issue of 20,58,759 equity shares to its resident shareholders by way of swap of shares. Telecom
3 5 M/s Diabu Diamond Tools (India) Pvt. Post facto approval has been sought  for conversion of Rs. 94,78,475/- payable to M/s. Diabu Diamantwerkzeuge Heinz Beuttner GmbH into 42,127 equity shares Wholesale trading
4 6 IBM India Pvt Ltd i. Merger of its 4 WoS into its another WoS, Sterling Commerce Solutions Private Limited which is an investing company.
ii. Post-facto approval for Telelogic India Private Limited to act as an investee company which is holding investments in IBM Business Consulting Services Private Limited till its merger into Sterling India
iii. Post facto approval for Network Solutions Private Limited for holding 2 shares in Telelogic India.
iv. Post facto approval for 4 WoS for acting as dormant companies, after transfer of software development business to their holding company, IBM India.
v. Post facto approval for 4 WoS  for acting as dormant companies, after transfer of software development business to their holding company, Telelogic India
Investing company
5 7 Samara Capital Partners Fund II Limited i. Purchase of 100% of the shareholding of Adcock Ingram Healthcare Private Limited from Adcock Ingram Healthcare (Pty) Ltd and Adcock Ingram International (Pty) Ltd, and
ii. upon completion of the aforesaid acquisition of AIHPL by the applicant, approval from the FIPB for the downstream investment of Rs. 10 crore by AIHPL in Oaknet Life Sciences Private Limited (Oaknet), a brownfield pharmaceutical company
6 10 DCNS Approval has been sought by DCNS to set up a company in India (IndiaCo) for the purposes of conducting the business of undertaking design and industrialization studies, research and development activities and manufacturing and maintenance in relation to air independent propulsion systems for submarines. Defence
7 12 M/s Tikona Digital Networks Pvt Ltd Approval has been sought for the issuance of CCDs thereby increasing foreign equity to 76.73% Telecom
8 13 Janalakshmi Financial Services Limited Janalakshmi Financial Services Limited has sought an approval for swap of shares NBFC

The following two (02) proposals have been rejected:

S. No. Item No Name of the applicant Gist of the proposal Sector
1 1 M/s Flag Telecom Singapore Pte Limited, Singapore An indirect wholly owned subsidiary of Reliance Communications (RCOM), India has sought approval for setting up a 100% subsidiary telecom company, which is yet to be incorporated. Telecom
2 8 Star Den Media Services Private Limited Approval has been sought  for changing its business activities from providing the services to broadcasters for placement of television channels to acting as an Investing company only Proposed-Investing company

The following one (01) proposal was filed as a proposal, it was examined as a downstream intimation as per request of the applicant. Appropriate directions were issued to FIPB Secretariat by the Board after such examination. This proposal will be categorized as an intimation.

S. No Item No Name of the applicant Gist of the proposal Sector
1 9 M/s Bayer Vapi Private Limited Post facto approval for share transfer of 3,08,166 equity shares (0.87% of the total capital) of INR 10 each fully paid up for cash at a consideration of INR 3,569.50 per share among two promoters of M/s Bayer CropScience Limited (BCSL) through a Block Deal Transaction. Manufacturing

The following one (01) proposal was listed as a tabled item:

S. No Name of the applicant Gist of the proposal Sector FDI (Rs crore)
1 Advanced Enzyme Technologies Ltd The proposal of Advanced Enzyme Technologies Ltd for investment proposed to be made by FIIs/NRIs/FPIs/QFIs/AIFs/FVCIs pursuant to fresh issue and offer for sale by certain NRIs, foreign company, and resident shareholders was considered in the 234th meeting held on 29.4.16, wherein foreign equity of 60.39% and aggregate consideration of Rs. 60 crore was approved. However, the applicant conveyed that the maximum total issue size shall be Rs. 480 crore and not Rs. 60 crore.  Therefore, the matter was placed before the Board, which recommended that the information be taken on record, and the Government, accordingly, approved the same. Pharma 420 wishes the very best.

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