13 FDI proposals worth Rs 1,525 crore cleared

New Delhi, June 13 (PTI) Government Friday approved as
many as 13 F.D.I. proposals worth Rs 1,524.70 crore including
one by steel major ArcelorMittal for its operations in India
and by Cyprus-based Golboot Holdings, which is reportedly
pumping in Rs 700 crore in corporate major Mahindra &
Mahindra.

"Based on the recommendations of Foreign Investment
Promotion Board (F.I.P.B.) in its meeting held on June 4,
Finance Minister P. Chidambaram has approved 13 proposals of
Foreign Direct Investment (F.D.I.) amounting to Rs 1,524.70
crore," said a Finance Ministry statement.

The global steel major ArcelorMittal has proposed to
convert operating company in India into operating-cum-holding
company to make downstream investment.

Cyprus-based Golboot Holdings has proposed to induct
Rs 700 crore by subscribing unsecured and compulsorily
convertible debentures subject to approval from its Indian
partners.

Earlier last month, Mahindra and Mahindra had informed
the BSE that it would raise funds at 9.25 percent per annum
by issuing over 93 lakh unsecured fully and compulsorily
convertible debentures (FCDs) of face value of Rs 745 each
aggregating Rs 700 crore to Golboot Holding Ltd, an entity
controlled by Goldman Sachs.

The company board also gave its approval to the proposal
yesterday. The FCDs are proposed to be converted into equity
shares in next 18 months. With this investment, Golboot
Holdings Ltd would own 3.68 percent of post issue paid up
equity share capital of the company.

Finance Minister also gave his approval to the proposal
of Mumbai-based India Rizing Fund to accept Rs 550 crore
F.D.I. from overseas investors and to issue shares against
money received for making investment in defence S.M.E. sector.

Other proposals, which got approval included Hyderabad
based Gayatri Infra Venture's to offload 49 percent stake for
Rs 200 crore and Deutsche Bank's for acquiring 5 percent
stake in the Delhi Stock Exchange.

Indiabulls Power Generation has also got approval for
converting operating company into an operating cum holding
company for making further downstream investments.

Another proposal of Apollo Group to induct Rs 61 crore
by issuing I.P.O. and pre-I.P.O. placement of equity shares of
compulsorily convertible preferential shares.

However, the proposals of Top Security and Rish PTE
were deferred.