The Hindu : Business : Parryware Roca, M&S proposals get FIPB nod

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Parryware Roca, M&S proposals get FIPB nod

Special Correspondent

A Marks & Spencer store in central London.

NEW DELHI: The Union Government has permitted Parryware Roca Pvt. Limited to bring in Rs. 741.48 crore as foreign direct investment (FDI) for increasing the foreign equity stake from 50 per cent to 100 per cent in its sanitaryware venture and to convert its operating company in to an operating-cum-holding company for making downstream investments.

Alongside, real estate major Eldeco’s Rs. 195.70-crore proposal for the induction of foreign equity and change in status from operating company in to operating-cum-holding company was also cleared.

These two major proposals were among the 28 FDI proposals worth Rs. 1,327.70 crore which were approved by Finance Minister P. Chidambaram on the recommendations of the Foreign Investment Promotion Board (FIPB).

According to a Finance Ministry statement here on Friday, global retail major Marks & Spencer’s also received the go-ahead for 51 per cent foreign direct investment in single brand retail business. Likewise, two other retail proposals cleared were that of Pearle Europe for the induction of 50 per cent FDI for single brand retail trading and Giordano Fashions for setting up a chain of single brand retail stores.

These retail proposals, the statement said, were approved subject to the condition of Press Note 3, 2006, under which no single foreign institutional investor can directly or indirectly hold more than 10 per cent equity in such ventures. In the atomic power sector, Hungary’s Global Energy Mining and Minerals has been allowed to induct FDI up to 74 per cent amounting to about Rs. 24 crore in a titanium mining and separation venture.

Among others, Aquamarine Resorts has been permitted to bring in Rs. 90 crore as FDI to acquire the status of foreign-owned Indian holding-cum-operating company to make downstream investment. ENI UK Holding has also been allowed to acquire 20 per cent shares of Hindustan Oil Exploration Company through open offer for Rs. 26.11 crore while International Asset Reconstruction Company has received the nod to sell up to 19.56 per cent of its post-issue stake for Rs. 24.20 crore.

In the health sector, U.S.-based Midmark Corporation has been allowed to induct FDI up to 49 per cent in a company engaged in the manufacture of health equipment.

However, 11 FDI proposals were deferred on the recommendation of FIPB. These include newspaper group Amar Ujala’s proposal for amalgamation of two companies and that of Transcend Infrastructure to increase FDI beyond 49 per cent in a towers’ venture engaged in communications and broadcasting.

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