FDI in Global Assets Holding Corp under lens
After ByCell, the ministry of home affairs (MHA) now wants a detailed security check into Global Assets Holding Corporation's (GHC) move to offload 49% stake to a clutch of foreign investors.
NEW DELHI: After ByCell, the ministry of home affairs (MHA) now wants a detailed security check into Global Assets Holding Corporation's (GHC) move to offload 49% stake to a clutch of foreign investors, including Singapore's SC Bank private equity fund, Mauritius's Technology Infrastructure and Park Holding Finance Corporation from Virgin Islands, for Rs 560 crore. MHA is of the view that the deal requires security clearance as GHC is the holding company of leading network services firm GTL and telecom tower major GTL Infrastructure.
MHA wants GHC to furnish additional details such as address, country of registration and information related to directors (both passport number and nationality) of the foreign companies involved in the proposed investment. Following MHA request, the foreign investment promotion board (FIPB), which deferred clearing GHC's application last week, has now asked the company to furnish additional details relating to the deal. It is understood that FIPB will take up the case at its next meeting on December 14.
Post-deal, GHC plans to increase its investment in GTL from 28% to 62%. GHC said it will also increase its stake in GTL Infrastructure. Also, after GHC offloads stake to these investors, the total foreign direct investment in GTL was to increase to a little over 71% from 40.7% while FDI in GTL Infrastructure was to rise to 39.3% from 33.9%. GHC is also the holding company of two unlisted firms — India Wireless Technology, in which it holds a 30% stake, and Global Innov-Source Solutions, which it wholly owns.
GHC has also informed FIPB that it would use the proceeds from the deal to further increase its investments in other unlisted group companies. It had added that it will invest in its overseas subsidiaries for expanding business opportunities globally.
GHC has established itself as a leading player in the telecom infrastructure and networking services space. The group has combined revenues of Rs 1,281 crore, with over 5,000 employees across 25 countries.
Industry sources said investors had picked up stake in GHC primarily because of the impressive performance of GTL and GTL Infrastructure. GTL is amongst the largest network services providers in India and offers a range of services such as network planning and design, network deployment, operations and maintenance and infrastructure management.
It has a presence in 20 countries and is associated with about 35 operators globally. GTL infrastructure is India's third largest passive telecom infrastructure provider. The company plans to roll out more than 22,000 towers across various telecom circles in India.
MHA wants GHC to furnish additional details such as address, country of registration and information related to directors (both passport number and nationality) of the foreign companies involved in the proposed investment. Following MHA request, the foreign investment promotion board (FIPB), which deferred clearing GHC's application last week, has now asked the company to furnish additional details relating to the deal. It is understood that FIPB will take up the case at its next meeting on December 14.
Post-deal, GHC plans to increase its investment in GTL from 28% to 62%. GHC said it will also increase its stake in GTL Infrastructure. Also, after GHC offloads stake to these investors, the total foreign direct investment in GTL was to increase to a little over 71% from 40.7% while FDI in GTL Infrastructure was to rise to 39.3% from 33.9%. GHC is also the holding company of two unlisted firms — India Wireless Technology, in which it holds a 30% stake, and Global Innov-Source Solutions, which it wholly owns.
GHC has also informed FIPB that it would use the proceeds from the deal to further increase its investments in other unlisted group companies. It had added that it will invest in its overseas subsidiaries for expanding business opportunities globally.
GHC has established itself as a leading player in the telecom infrastructure and networking services space. The group has combined revenues of Rs 1,281 crore, with over 5,000 employees across 25 countries.
Industry sources said investors had picked up stake in GHC primarily because of the impressive performance of GTL and GTL Infrastructure. GTL is amongst the largest network services providers in India and offers a range of services such as network planning and design, network deployment, operations and maintenance and infrastructure management.
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It has a presence in 20 countries and is associated with about 35 operators globally. GTL infrastructure is India's third largest passive telecom infrastructure provider. The company plans to roll out more than 22,000 towers across various telecom circles in India.
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