The foreign investment approval board has cleared a proposal of KKR Mauritius Cement Investments to acquire 70 per cent share in Avnija Properties, a subsidiary of Dalmia Cement (Bharat), for Rs 715 crore.
"The Foreign Investment Promotion Board (FIPB) cleared the KKR's investment proposal on July 30 and sent it to Finance Minister Pranab Mukherjee for his approval," sources said.
KKR Mauritius Cement Investments belongs to KKR, one of the world's leading private equity investor.
DCBL is in the process of demerging its entire cement business to its wholly-owned subsidiary Dalmia Bharat Enterprises (DBEL).
As per the scheme of arrangement, the entire equity shares relating to the cement business by DCBL shall also be demerged, from DCBL into DBEL.
DBEL would demerge the cement undertaking into Avnija Properties, sources said.