Shan’s Blog

The government gave a go-ahead to foreign direct investment of up to Rs 3,000 crore (about 674 million dollars) by Independent Mobile Infrastructure Mauritius Ltd (IMIML) in India.

IMIML would be making the investment over a five-year period, Information and Broadcasting Minister P R Dasmunsi told reporters in New Delhi after the proposal was cleared by the Cabinet Committee on Economic Affairs (CCEA).

“The approval is subject to licensing and security requirement of the Department of Telecom (DoT) and subject to the condition that the company would divest 26 percent equity in favour of Indian public in five years if it is listed in other parts of the world,” Dasmunsi said.

The FDI inflow by the telecom infrastructure provider will begin by acquisition of 10,000 equity shares of Rs 10 each from promoters S Venkateswarlu and Chandra Padmasri, representing 100 percent shareholding of the company.

The balance would be invested by way of further issue of shares over a period of 1-5 years, depending on the capital requirement of the company, Dasmunsi said.

The investments can be made by IMIML or its group companies, parent, subsidiaries, nominees or associates, the Minister said.