Date:17/05/2008 URL: http://www.thehindubusinessline.com/2008/05/17/stories/2008051752240100.htm

Back Govt defers decision on PepsiCo’s plea against divestment condition

Information sought on Dubai co in proposed DLF Limitless venture

Approvals received
Manipal Universal for induction of foreign equity in holding company.
Vodafone Essar and Cobra Beer to convert their operating companies into operating-cum-holding entities.
Advised I-Sec to use ‘automatic route’ for foreign equity infusion.

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New Delhi, May 16 PepsiCo India Holding — which has sought an exemption from the divestment condition that requires it to offer a part of equity stake to Indian shareholders — will have to wait longer for a Government decision on the issue, as the Foreign Investment Promotion Board (FIPB) has deferred the company’s proposal.

Meanwhile, the FIPB has approved Manipal Universal Learning’s plans for induction of foreign equity in holding company entailing Foreign Direct Investment of Rs 1,435 crore, according to an official release. While the company refused to divulge details of the proposal, sources said that some existing funds were increasing their equity contribution.

Vodafone Essar also received permission to convert its operating company into an operating-cum-holding entity to make investment in telecom infrastructure business, while Cobra Beer’s application to change the status of its Indian company into operating-cum-holding entity and to make investments by acquiring up to 76 per cent stake in Iceberg Industries for Rs 20.50 crore, also got FIPB nod.

In case of ICICI Securities (I-Sec) — where the parent firm ICICI Bank is seeking to unlock value by selling shares to public and institutional investors — FIPB has advised it to exercise the ‘automatic route’ for foreign equity infusion.

Another proposal that has been deferred by FIPB is of DLF Limitless Developers Pvt Ltd. DLF would develop a mega project in Bidadi Knowledge City near IT hub Bangalore in partnership with Dubai-based Limitless. “The proposal entails issue of shares in lieu of pre-incorporation expenses. FIPB may seek some more information on the Dubai company,” sources pointed out.