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09-20-2013, 06:21 AM #1
FIPB nod to Axis Bank raising foreign shareholding limit
The Foreign Investment Promotion Board (FIPB) has cleared a host of proposals, including raising of foreign holding in Axis Bank to 62 per cent.
The other proposals which have been approved by the Board include those of HCL Technologies, Shantha Biotech, Indian Rotocraft.
"The FIPB approved Axis Bank's proposal to allow foreign investment in the bank to 62 per cent, subject to FII holding not exceeding 49 per cent," sources said.
At present foreign investors hold 49 per cent in Axis Bank, with FII stake at 40.7 per cent and GDRs/ADRs holding 8.08 per cent.
Meanwhile, shares of Axis Bank closed at Rs 1,140.25, up 5.56 per cent on the Bombay Stock Exchange on Thursday.
FIPB, headed by Economic Affairs Secretary Arvind Mayaram, also cleared HCL Technologies' proposal to hike Foreign Direct Investment (FDI) limit in the company to 74 per cent from 49 per cent.
Although FDI in IT sector is under automatic route, HCL Tech had to approach the FIPB to seek clearance as the investment would impact its wholly-owned telecom subsidiary HCL Connet System & Services.
The Board took up as many as 32 proposals, including six in the pharma sector, for hiking foreign investment limit.
FIPB also cleared the proposal of Shantha Biotechnics proposal to buy out the entire minority shareholding in the company and raise promoter stake to 100 per cent from 97 per cent at present.
"The proposal of Shantha Biotechnics has been cleared. This would entail a foreign investment of Rs 755 crore," the source added.
The proposal of Kinedex Healthcare and Laurus Labs were deferred, sources said, adding that the application of Korea's SD Bio Standard Dignostic to infuse $5 million into a domestic company was cleared.