Zee Tele's Rs 480 crore FCCB issue cleared

The Centre has cleared 34 foreign direct investment (FDI) proposals worth Rs 617.28 crore, including Zee Telefilm's plan to issue Rs 480 crore foreign currency convertible bonds (FCCB) to two foreign companies.

Finance Minister Jaswant Singh also approved the proposal of Pearson Overseas Holdings of the UK to pick up 13.85 per cent stake (83,73,638 shares with a face value of Rs 10 each) in Business Standard Ltd, following the recommendations of the Foreign Investment Promotion Board (FIPB), which met on March 29.

The ministry also permitted Citicorp International Finance to hike its stake in Monnet Ispat from 5.4 per cent to 19.56 per cent, for Rs 35.27 crore. Most of the proposals that came up for clearance from the finance ministry pertained to the information technology, broadcasting, petroleum and steel sectors.

Zee Telefilms plans to issue FCCBs of Rs 480 crore to two overseas corporate bodies (OCBs), Delgrada Ltd of the Virgin Islands and Wakefield Holdings of Mauritius.

Ri Metering Gmbh of Germany has also been permitted to invest Rs 40.80 crore in its Indian arm Elster Metering.

Mauritius-based Tiara Investment has been allowed to hike its stake from 32.5 per cent to 59 per cent in DCM Estates and Infrastructure Ltd. Covanta Energy of Mauritius plans to double its equity in its Indian arm Great Eastern Energy Corporation from 50 to 100 per cent for which it will make an investment of Rs 20 crore.

Among the other proposals cleared, Lafarge Refractories of France and Clipsal Investment Pte of Mauritius have received the government's approval for conversion of the external commercial borrowing of their local arms into equity.