The Foreign Investment Promotion Board (FIPB) has rejected Reliance Communications Ltd.'s proposal to set up a wholly owned telecom arm. It also rejected the request of Star Den Media Services to change its structure to that of a holding company, according to a statment issued by the FIPB.
Reliance Communications' step-down arm, Flag Telecom Singapore Pte Ltd., had sought to set up a 100 percent subsidiary telecom company, which is yet to be incorporated. Star Den Media, which currently provides services to broadcasters for placement of television channels, had requested a change in its structure.
The FIPB approved four foreign direct investment (FDI) proposals worth Rs 643 crore. The board approved the FDI proposal by Advanced Enzyme Technologies Ltd. for Rs 420 crore, Corona Remedies Pvt Ltd. for Rs 118 crore, Ordain Health Care Global Pvt Ltd. for Rs 77 crore and Macmillan Publishers International Ltd. for Rs 28.20 crore.
Advanced Enzyme Technologies has asked for an additional investment by foreign institutional investors pursuant to fresh issue and offer for sale by some non-resident Indians.
Corona Remedies had sought approval for foreign investment of 19.5 percent by Cydista Ltd. through subscription of compulsorily convertible preference shares worth Rs 100 crore, and purchase of equity shares from existing shareholders to the tune of Rs 18 crore.
Ordain Health Care had requested for the acquisition of certain intellectual property of Klar Sehen Pvt Ltd., while Macmillan Publishers was pursuing foreign investment of up to 100 percent in a new company, proposed to be set up in India.
Proposals of eight companies were deferred by the government panel, which included names like IBM India Pvt Ltd., Samara Capital Partners Fund II Ltd., Tikona Digital Networks Pvt Ltd., and Janalakshmi Financial Services Ltd.
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