Fair trade regulator Competition Commission of India on Tuesday approved acquisition of up to 40 per cent stake in IndoStar Capital Finance Ltd by BCP V Multiple Holdings on a fully diluted basis.
The regulator's clearance is through the green channel, which allows for an automatic system for speedy approval of combinations, subject to certain conditions.
The CCI in a tweet said it "received a green channel combination notice pertaining to acquisition of up to 40 per cent of the issued and paid-up equity share capital of IndoStar Capital Finance Limited on a fully diluted basis by BCP V Multiple Holdings Pte. Ltd".
As per the combination notice filed with the CCI, the proposed acquisition of IndoStar's equity shares involve three steps.
It includes acquisition of equity shares of IndoStar pursuant to an open-offer to be made by BCP to the public shareholders, subscription of equity shares and compulsorily convertible preference shares issued by IndoStar and secondary purchase of equity shares from IndoStar Capital.
BCP belongs to the Brookfield group, which is a global alternative asset manager, while IndoStar is a non banking financial company.