The Hindu : Business : Manipal Universal to induct Rs. 1,435 cr. foreign equity

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Saturday, May 17, 2008
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Manipal Universal to induct Rs. 1,435 cr. foreign equity

Special Correspondent

Chidambaram clears 18 FDI proposals worth Rs. 1,820 crore

DLF Limitless, Pepsico proposals deferred
CCEA to consider Volvo proposal

NEW DELHI: The Central Government on Friday permitted Manipal Universal Learning Pvt. Ltd. to induct foreign equity worth Rs. 1,435 crore ($350 million) in a holding company while giving the go-ahead to U.S.-based Freightcar America Inc. to set up a new joint venture for railcars with a foreign direct investment (FDI) of Rs. 78 crore.

These two approvals are among the 18 FDI proposals worth Rs 1,820.24 crore which were cleared by Finance Minister P. Chidambaram on the recommendations of the Foreign Investment Promotion Board (FIPB), according to an official statement here.

Incidentally, among the approvals, Manipal Universal Learning — a major financial and industrial group in south India that runs university and many professional educational institutions in India and abroad — accounted for more than 78 per cent of the total proposed FDI inflow at over Rs. 1,820 crore.

The joint venture that Freightcar has proposed to set up is to undertake test marketing of aluminium railcars, among other activities.

The Finance Ministry statement noted that the proposals of the realty firm DLF Limitless Developers Pvt. Limited and Pepsico India Holding were deferred by the FIPB.

While DLF Limitless had sought the Government’s permission to issue shares in lieu of pre-incorporation expenses, Pepsico India wanted a waiver of the divestment condition which required it to offer a part of equity stake to Indian shareholders.

Among other approvals, Mauritius-based Indivision India Partners has received clearance to invest Rs. 120.04 crore in a company engaged in merchant banking and other non-banking finance activities.

Cobra Beer also got the Government’s nod to change the status of the Indian company into an operating-cum-holding company to make downstream FDI investment worth Rs. 20.50 crore in acquiring up to 76 per cent stake in Iceberg Industries.

Likewise, Vodafone Essar has been allowed to convert its operating company into an operating-cum-holding company to make downstream investment in a company engaged in telecom infrastructure.

Alongside, Sweden-based Aktiebolaget Volvo’s proposal has been recommended for the consideration of the Cabinet Committee on Economic Affairs (CCEA) as the FDI investment involved is over Rs. 600 crore.

However, its proposal to induct foreign equity up to 8.1 per cent through acquisition of shares with an investment of Rs. 123 crore ($30 million) was approved.

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