The Cabinet Committee on Economic Affairs today gave its approval to the proposal of M/s. Aditya Telecom Limited, subject to the conditions recommended by FIPB, to:
(a) The issue and allotment of up to 25,00,000 compulsorily convertible preference shares of a face value of Rs.10/- each of M/s. Aditya Birla Telecom Limited to P5 Asia Holding Investments (Mauritius) Limited for an aggregate consideration of the rupee equivalent of US D 640,000,000 (INR 2704.21 crore approximately), constituting 20% of the share capital of the company on a fully diluted basis.
(b) The enhancement of the foreign investment limit in M/s. Aditya Birla Telecom Limited to 74%
(c) M/s. Aditya Birla Telecom Limited to act as an "operating cum holding company" and make downstream investments from time to time as under:
(i) To acquire 19047 equity shares of Rs.10/- each representing 16% of the total paid up equity share capital of M/s. Indus Towers Limited, a company which is engaged in the provision of passive infrastructure (i.e. towers) in the telecom sector.
(ii) M/s. Aditya Birla Telecom Limited also holds 50,000 equity shares of Rs.10 each representing 100% of the equity share capital of M/s. Idea Cellular Towers Infrastructure Limited a company registered as an Infrastructure Provider - I with the Department of Telecommunication. The approval in this regard is post facto.
The approval would result in FDI amounting to Rs.2704.21 crore (approx) in the country.
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