Infosys' ADS among 50 FDI proposals cleared

Indian IT major Infosys Technologies' proposal to increase its American Depository Shares from 3.5 per cent to between 6.27 and 7.78 per cent was amongst 50 foreign direct investment proposals worth Rs 2229 crore (Rs 22.29 billion) was approved by the government on Monday.

The proposals were cleared by Commerce and Industry Minister Arun Shourie on the basis of recommendations made by the Foreign Investment Promotion Board, an official release said in New Delhi.

The proposal of Infosys would involve an FDI investment of between Rs 1430 crore (Rs 14.3 billion) to Rs 2145 crore (Rs 21.45 billion). The Bangalore based company has interests in business consulting, systems integeration, application, development maintenance, re-engineering and product engineering proposal.

In addition to this, the government also cleared a Rs 25 crore (Rs 250 million) proposal of Singapore Computer Systems Ltd for bringing in 30 per cent FDI in Mumbai based Kshema Technologies Ltd.

Samsung Electronics and Royal Dutch Shell Group of Companies both received clearances for amendment in the existing foreign collaboration approval in their Indian arms.

Samsung Electronics sought amendment in the existing FC approval for permission to open trading on carry and cash basis in its Indian arms -- Noida based Samsung India Electronics Ltd and Delhi based Samsung Electronics India Information and Telecommunication Ltd.

Other companies, which received similar clearances included US company Samsonite Corporation for manufacture, marketing and merchandising "Hedgren" products in its Mumbai based Indian arm Samsonite India Pvt Ltd; and another US company Estee Lauder for providing logistics and mangerial support services to Indian distributors of Estee Lauder products.

The government also cleared proposals for setting up wholly owned subsidiary of Italian company J Colours SPA for
manufacture and sale of colourants, powder coatings and colour tinting machines and shakers envisaging an inflow of Rs 6 crore (Rs 60 million).

South African company Shoprite Holdings Ltd's Rs 6 crore proposal for setting up wholly owned subsidiary for
undertaking cash and carry wholesale trading operations in India for food and non-food products and establishing cold
chain facilities was cleared.

Kuwait-based Mahinder Malhotra's proposal to increase foreign equity from 44.60 per cent to 59.20 per cent in New
Delhi-based telecom company Cain Information India Pvt Ltd was also approved.

Other proposals cleared included:

• Dutch company Agilent Technologies' transfer of 10 shares of Rs 10 each in its Indian arm;
• US company Cendura Corporation's acquisition of 10,000 shares of Rs 10 each in its Indian arm;
• Irozon Inc., acquisition of 1000 shares of Rs 100 each in Chennai based Irizon Communications Pvt Ltd;
• Rs 15.75 crore (Rs 157 million) proposal of French company Bouygues Offshore S A for 100 per cent FDI in Chennai based International Development Process and Engineering Ltd;
• Dutch company SHV Calor Asia B.V for amendment existing FC approval for Hyderabad based SHV Energy India Pvt Ltd;
• LSG Asia's Rs 1.3 crore (Rs 13 million) porposal for 100 per cent FDI in Mumbai based Mars Restaurant Ltd; and
• US based Quality Assurance Institute for amendment in existing FC approval in its Indian arm.