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Govt approves Vodafone, Atria FDI proposals

MUMBAI: The government has approved nine foreign direct investment (FDI) proposals worth Rs 659 crore including those of Vodafone and Atria Convergence Technologies.

vodafoneThe government has cleared Vodafone India’s proposal for acquisition of 100% shares of internet service provider (ISP) You Broadband India by way of transfer from resident and non-resident shareholders. The FDI proposal is worth Rs 55.09 crore.

Atria, whose FDI proposal was worth Rs 35 crore, had sought approval for transfer of 0.99% of shares currently held by resident shareholders to the existing foreign investors Argan (Mauritius), Mauritius and TA FVCI Investors Ltd, Mauritius.

With this, the private equity firms will take their holding in Atria up to 97%, a source said.

As reported earlier by, US-based TA Associates and India Value Fund Advisors (IVFA) acquired 95% stake in Atria for investing $500 million, valuing the company at $526 million.

ACT-tech-logoAtria had also sought acquisition of up to 100% shares of the investee company by the foreign investors Argan (Mauritius) and TA FVCI Investors in the future depending on the exigencies of the remaining Indian resident shareholders.

The government has also approved the FDI proposal of You Broadband India for acquisition of 9,79,875 equity shares of its downstream company Digital Outsourcing Private Ltd (DOPL) in lieu of issue of 20,58,759 equity shares to its resident shareholders by way of swap of shares. DOPL was engaged in the business of cable TV services.

The proposals were based on the recommendations of the Foreign Investment Promotion Board (FIPB) in its 243rd meeting held on 21 February.

The FIPB, in its meeting on 21 February, approved nine FDI proposals totaling a foreign investment of Rs 659 crore. This included Netmagic Solutions’ proposal involving Rs 533.83 crore of FDI. Approval was sought for increase in the foreign shareholding of the company from 81.63% to 100% by NTT Communications Corporation, Japan.

The FIPB also recommended three proposals for approval from the Cabinet Committee on Economic Affairs.