Nine foreign investment proposals worth Rs 798.73 crore approved

NEW DELHI: The Finance Ministry has cleared nine foreign investment proposals worth Rs 798.73 crore and recommended the Rs 6,400 crore GlaxoSmithKline's proposal for consideration of Cabinet Committee on Economic Affairs (CCEA).

The Ministry said it approved the nine proposals following recommendations of the Foreign Investment Promotion Board (FIPB).

Of the nine that have been approved, Hospira Pte Ltd, Singapore proposal entails foreign investment worth Rs 650 crore. The proposal related to post facto approval for already subscribed equity share of Hospira India Pvt Ltd, Tamil Nadu.

It also proposes fresh equity infusion in Hospira Healthcare India Pvt Ltd, Tamil Nadu.

Westbridge Crossover Fund LLC, Mauritius has got permission for issuance of the warrants convertible into equity shares. The proposal entails investment worth Rs 100 crore.

Referring to proposal of pharma major GlaxoSmithKline, the Ministry said, it has been "recommended for the consideration of CCEA, as the investment involved in the proposal is above Rs 1,200 crore".

A Singaporean subsidiary of the UK-based GlaxoSmithKline proposes to buy 24.33 per cent stake, or 2.06 crore equity shares, in GlaxoSmithKline Pharmaceuticals via an open offer.

The acquisition would result in foreign exchange inflows to the tune of Rs 6,400 crore, sources said.

Other investment proposals that have been cleared (based on the recommendations of the January 13 FIPB meeting), include that of Indo-German Steel Hub LLP, Golden Invest Pte Ltd, Singapore and B Braun Singapore Pte Ltd, Singapore.

The Finance Ministry further said it has rejected the proposal of Biesse Manufacturing Company, Bangalore. The company had sought permission for conversion of import payables into equity share capital.

Decision on five investment applications has been deferred and four kept in abeyance, it added. The Ministry also recommended that the proposal of Prizm Payments Services be considered by the CCEA.

The proposal is for acquisition of 100 per cent equity stake of Prizm Payment Services from resident and non-residents shareholders by Hitachi Consulting Software Services and Hitachi Ltd.