COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

ICICI gets nod to issue ADRs/GDRs

The Foreign Investment Promotion Board today permitted ICICI Limited to issue American Depository Receipts or ADRs and Global Depoitory Receipts or GDRs worth $ 500 million.

The board also allowed Mahindra and Mahindra to sell off its entire holding in a joint venture company with Otis Elevator Company of the United States.

These formed part of the 45 proposals cleared by the board today amounting to a total foreign direct investment inflow of Rs 31.50 billion, the highest in the 1999 calender year, FIPB sources said here.

ICICI, the sources said, have not specified a time-frame for the issue but has stated that it would be mix of ADRs and GDRs.

Meanwhile, Sumitomo Chemical Company Limited of Japan has been given the nod to set up two wholly-owned subsidiaries in India with a collective infusion of Rs 175 million.

The first company would be engaged in the business of manufacturing vital ingredients for household insecticides while the second subsidiary would market these products. Gujarat and Maharashtra have been identified as the sites for the ventures.

The South Korea-based Daewoo Motor Company has been permitted to infuse $ 100 million into its Indian subsidiary -- Daewoo Motor India Limited -- and hike its stake in the venture from 92 per cent at present to 96 per cent.

Another auto giant Hindustan Motors has withdrawn its proposal to divest 10 per cent stake in favour of Mitsubishi Motor Company of Japan. Mistubishi is the technological collaborator of Hindustan Motors for producing the Lancer luxury sedans.

HM had, a few years back, sought permission to give 10 per cent stake in the company to its Japanese partner. However, the clause was withdrawn today though it was stated that Mitsubishi would continue to provide technological support on royalty payment basis.

Engineering giant ABB Limited has been allowed to set up a 50-50 joint venture company with National Thermal Power Corporation for undertaking and executing projects. The venture would involve an foreign direct investment infusion of Rs 60 million.

M&M, the sources said, has been permitted to sell off its entire 23.88 per cent holding in its joint venture with Otis Elevators for Rs 1.12 billion. With this, Otis's stake in the venture would go up from 45 per cent at present to 68.8 per cent. The remaining holding is with the public.

The board, however, deferred decisions on proposals by Pfizer and Bayer Industries.

Global cosmetic major Estee Lauder has been given the go-ahead for setting up a wholly-owned subsidiary in India with the infusion of Rs 22.5 million for providing logistics and managerial support to its Indian distributors.

Zee Telefilms has been allowed to swap its equity holding within the existing promoters. Pursuant to the swap, its promoters -- Subash Chandra, Nihan Holdings of Hong Kong and Dallah Albraka of Bahrain -- would be hiking their holding from 51 per cent to 59.16 per cent. This would entail a fresh equity infusion of Rs 260 billion.

The proposal also permits the company to undertake some out-bound investments.

The board allowed the promoters of Satyam Infoway to hike their stake in the venture from 37.3 per cent to 39.2 per cent by bringing in additional investment of Rs 480 million. Besides, a new company -- Sterling Communications International Inc -- is being inducted as a partner in the venture.

Sumitomo Electric Industries has been allowed to bring in Rs 15.5 million to set up a joint venture in India for producing electrical items. Sumitomo would have the controlling 51 per cent stake in the venture.

Franco Marketing Company has been allowed to set up a 50-50 joint venture with an Italian firm for marketing electric chimneys being produced from its existing venture in India.

In the electronics and computer software sector, Teklogi of Canada, Network Programs, Peoplesoft International, Fas Consulting, Toonz Animation and Apex Tech (India) have been permitted to set up wholly-owned subsidiaries in India for producing computer software. All the proposals together involved an FDI inflow of Rs 80 million.

The board also permitted Kellogs and Perfetti to introduce new products from their respective existing ventures in India. While Kelloggs has been allowed to introduce other grain-based processed food products, Perfetti has been granted the nod for making gum-base for chewing and bubble gums as also processed aromatic compounds.

Dr Mohan Swami Datuk has been allowed to set up a 100 per cent subsidiary with the infusion of Rs 720 million for real estate development.

Two proposals from the information and broadcasting sector were also approved by the board today. These include the plea by DMBB for setting up an advertising company with 51 per cent foreign equity. Creative Eye has been allowed to infuse Rs 51 million and pick up a 28.41 per cent stake in a new entertainment software company to be set up for making television serial software.

UNI

Business news