NEW DELHI, Feb 5: The Foreign Investment Promotion Board (FIPB) has allowed Modicom Network and RPG Communications Holdings to substantially expand their equity base while keeping the foreign equity holding unchanged.FIPB has also cleared Bharti Telecom's proposal to diversify into manufacture and export of digital dairies, calculators, electronic music instruments. The company had entered into a joint venture agreement with Casio Computer and Mitsui of Japan, which hold a combined 60 per cent stake in the company.
The approval to Bharti Telecom is subject to the condition that within the proposed additional business activities, there will not be any change in the existing foreign collaborators and also the equity participation among the shareholders.
Modicom Network's paid- up capital is being raised to Rs 430 crore from Rs 350 crore to expand services being provided by the company in the area of telecommunication and also to meet other connected operational requirements.Motorola, which holds 10 percent stake in the company, and Distacom Communication, which holds 39 per cent, will bring in additional investment to maintain their equity stakes at the present level.
Motorola and Distacom are bringing in fresh equity through their Mauritius based subsidiaries.
Subsequent to the approval, Motorola Inc which presently holds equity capital worth Rs 35 crore will bring in Rs 8 crore as fresh equity through acquisition of 80 lakh shares. Distacom which holds 39 per cent amounting to Rs 136.50 crore will bring in about Rs 31 crore as fresh equity through acquisition of 31.2 lakh share.
RPG Communications Holdings is almost trebling its equity base to Rs 200 crore from the present level of Rs 74.33 crore. The company has foreign equity holding of 24.99 per cent at present. In its proposal to the FIPB, the company has stated that it fund requirement has increased manifold due to expansion of its business operations.Foreign equity holders in RPG Communications are bringing in about Rs 25 crore to keep theirequity holding at 24.99 per cent.Bharti Telecom, which is at present engaged in the manufacture and marketing of radio pagers in the country has also been allowed by the FIPB to service and export its pagers.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
