The Foreign Investment Promotion Board (FIPB) has referred Yes Bank’s Rs.2,650-crore proposal to the Cabinet Committee on Economic Affairs (CCEA) for its consideration and approval and cleared two other foreign direct investment (FDI) proposals envisaging a capital inflow worth Rs.89.33 crore.
According to a Finance Ministry release here on Monday, Yes Bank’s proposal pertains to seeking the government’s nod for increase in foreign equity participation through a qualified institutional placement (QIP) of shares to eligible non-residents or issue of global depository receipts (GDRs) to FIIs (foreign institutional investors). The Mumbai-based bank has got board approval to raise up to $500 million through GDRs or the QIP route.
The FIPB, the release said, had recommended Yes Bank’s proposal to the CCEA for consideration as it envisaged an FDI inflow of Rs.2,650 crore and was beyond the Board’s investment approval limit of Rs.1,200 crore.
As for the two proposals approved by FIPB, one pertains to Mauritius-based WCP Holdings III plan to acquire shares of National Stock Exchange (NSE) from an existing financial institution shareholder. The proposal entails an investment of Rs.88.87 crore.
The other proposal is that of Ahmedabad-based Sunij Pharma Pvt. Limited for induction of additional foreign equity in a pharmaceutical company. The deal envisages an inflow of Rs..46 lakh in foreign exchange.