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Tag: FDI

  • Nod to Idea, Star Den & four may fetch Rs 1200 cr FDI; You & Crest proposals deferred

    Nod to Idea, Star Den & four may fetch Rs 1200 cr FDI; You & Crest proposals deferred

    MUMBAI: Inter-ministerial body Foreign Investment Promotion Board has okayed six investment proposals, including Idea Cellular and Star Den Media Services expecting an investment of Rs 1,200 crore (USD 176.5 million).

    Idea Cellular Infrastructure Services (ICISL) had filed an application to raise foreign investment level in it to 67.5 per cent. ICISL is a wholly-owned subsidiary of Idea, which has become a foreign-owned firm with more than 50 per cent overseas investment. Star Den Media Services Pvt. Ltd. develops and distributes television, cable, and the related network platforms. It offers a platform for distributing television channels in India through all fixed networks including cable, direct to home, and internet protocol television.

    Other proposals which got a go-ahead are — Sanofi Synthelabo India, Boehringer Ingelheim India, A Menarini India Pvt Ltd and Recipharm Participation. The FIPB, led by the economic affairs secretary Shaktikanta Das, rejected three proposals, including AMP Solar India Pvt Ltd. and six proposals were deferred for further consultation and want of more information.

    Among the proposals deferred were You Broadband India, Crest Premedia Solutions and Scientific Publishing Services.

    Indiantelevision.com had earlier reported that the board will consider 17 foreign investment proposals on 28 December, including that of Star Den Media.

    FIPB had in June this year rejected a proposal of Flag Telecom Singapore, a wholly-owned unit of Reliance Communications (RCom), to set up a telecom subsidiary in India. Flag Telecom reportedly planned to acquire a company, payout for which would have been around US$120 million — in two parts.

    India allows FDI in some of the industry sectors via the automatic route, but, in certain segments that are considered sensitive for the economy and security, the proposals need to be cleared by FIPB first. FIPB had earlier met on 26 September to consider foreign investment proposals, including that of Idea Cellular.

    The Indian government has taken a series of measures in the recent past to give a fillip to foreign direct investment. In the first half of the current fiscal year, the inflows were USD 21.62 billion. FDI increased by 29 per cent to USD 40 billion in 2015-16 as compared to the previous fiscal.

    Also Read:

    Star Den, Flag Telecom, You & Idea FDI meet on 28 Dec

    Govt defers decision on FDI for Vodafone to acquire You Broadband

  • Nod to Idea, Star Den & four may fetch Rs 1200 cr FDI; You & Crest proposals deferred

    Nod to Idea, Star Den & four may fetch Rs 1200 cr FDI; You & Crest proposals deferred

    MUMBAI: Inter-ministerial body Foreign Investment Promotion Board has okayed six investment proposals, including Idea Cellular and Star Den Media Services expecting an investment of Rs 1,200 crore (USD 176.5 million).

    Idea Cellular Infrastructure Services (ICISL) had filed an application to raise foreign investment level in it to 67.5 per cent. ICISL is a wholly-owned subsidiary of Idea, which has become a foreign-owned firm with more than 50 per cent overseas investment. Star Den Media Services Pvt. Ltd. develops and distributes television, cable, and the related network platforms. It offers a platform for distributing television channels in India through all fixed networks including cable, direct to home, and internet protocol television.

    Other proposals which got a go-ahead are — Sanofi Synthelabo India, Boehringer Ingelheim India, A Menarini India Pvt Ltd and Recipharm Participation. The FIPB, led by the economic affairs secretary Shaktikanta Das, rejected three proposals, including AMP Solar India Pvt Ltd. and six proposals were deferred for further consultation and want of more information.

    Among the proposals deferred were You Broadband India, Crest Premedia Solutions and Scientific Publishing Services.

    Indiantelevision.com had earlier reported that the board will consider 17 foreign investment proposals on 28 December, including that of Star Den Media.

    FIPB had in June this year rejected a proposal of Flag Telecom Singapore, a wholly-owned unit of Reliance Communications (RCom), to set up a telecom subsidiary in India. Flag Telecom reportedly planned to acquire a company, payout for which would have been around US$120 million — in two parts.

    India allows FDI in some of the industry sectors via the automatic route, but, in certain segments that are considered sensitive for the economy and security, the proposals need to be cleared by FIPB first. FIPB had earlier met on 26 September to consider foreign investment proposals, including that of Idea Cellular.

    The Indian government has taken a series of measures in the recent past to give a fillip to foreign direct investment. In the first half of the current fiscal year, the inflows were USD 21.62 billion. FDI increased by 29 per cent to USD 40 billion in 2015-16 as compared to the previous fiscal.

    Also Read:

    Star Den, Flag Telecom, You & Idea FDI meet on 28 Dec

    Govt defers decision on FDI for Vodafone to acquire You Broadband

  • Star Den, Flag Telecom, You & Idea FDI meet on 28 Dec

    Star Den, Flag Telecom, You & Idea FDI meet on 28 Dec

    MUMBAI: The foreign investment board will consider 17 foreign investment proposals on 28 December, including that of Star Den Media Services and others.

    Star Den Media Services Pvt. Ltd. develops and distributes television, cable, and the related network platforms. It offers a platform for distributing television channels in India through all fixed networks including cable, direct to home, and internet protocol television.

    Other investment proposals include that of Idea Cellular Infrastructure Services, Flag Telecom Singapore Pte Ltd and You Broadband India.

    FIPB had in June this year rejected a proposal of Flag Telecom Singapore, a wholly-owned unit of Reliance Communications (RCom), to set up a telecom subsidiary in India. Flag Telecom reportedly planned to acquire a company, payout for which would have been around US$120 million — in two parts.

    Now, the Foreign Investment Promotion Board, helmed by the economic affairs secretary Shaktikanta Das, is planning to meet on 28 December, 2016. Around 17 proposals would be discussed, a finance ministry meeting notice stated. AMP Solar India, Grand Pvt Ltd. and Sanofi Synthelabo India proposals would also be considered.

    India allows FDI in some of the industry sectors via the automatic route, but, in certain segments that are considered sensitive for the economy and security, the proposals need to be cleared by FIPB first.

    FIPB had earlier met on 26 September to consider foreign investment proposals, including that of Idea Cellular Infrastructure Services.

    The Indian government has taken a series of measures in the recent past to give a fillip to foreign direct investment. In the first half of the current fiscal year, the inflows were USD 21.62 billion. FDI increased by 29 per cent to USD 40 billion in 2015-16 as compared to the previous fiscal.

  • Star Den, Flag Telecom, You & Idea FDI meet on 28 Dec

    Star Den, Flag Telecom, You & Idea FDI meet on 28 Dec

    MUMBAI: The foreign investment board will consider 17 foreign investment proposals on 28 December, including that of Star Den Media Services and others.

    Star Den Media Services Pvt. Ltd. develops and distributes television, cable, and the related network platforms. It offers a platform for distributing television channels in India through all fixed networks including cable, direct to home, and internet protocol television.

    Other investment proposals include that of Idea Cellular Infrastructure Services, Flag Telecom Singapore Pte Ltd and You Broadband India.

    FIPB had in June this year rejected a proposal of Flag Telecom Singapore, a wholly-owned unit of Reliance Communications (RCom), to set up a telecom subsidiary in India. Flag Telecom reportedly planned to acquire a company, payout for which would have been around US$120 million — in two parts.

    Now, the Foreign Investment Promotion Board, helmed by the economic affairs secretary Shaktikanta Das, is planning to meet on 28 December, 2016. Around 17 proposals would be discussed, a finance ministry meeting notice stated. AMP Solar India, Grand Pvt Ltd. and Sanofi Synthelabo India proposals would also be considered.

    India allows FDI in some of the industry sectors via the automatic route, but, in certain segments that are considered sensitive for the economy and security, the proposals need to be cleared by FIPB first.

    FIPB had earlier met on 26 September to consider foreign investment proposals, including that of Idea Cellular Infrastructure Services.

    The Indian government has taken a series of measures in the recent past to give a fillip to foreign direct investment. In the first half of the current fiscal year, the inflows were USD 21.62 billion. FDI increased by 29 per cent to USD 40 billion in 2015-16 as compared to the previous fiscal.

  • Quo Vadis ZEEL-RBNL

    Quo Vadis ZEEL-RBNL

    MUMBAI: It was hardly a month or so ago that ZEEL MD Punit Goenka had issued a denial, saying that it was not interested in acquiring the radio and TV business of the Anil Ambani-owned Reliance Broadcast Networks Ltd (RBNL) because radio regulations do not permit FDI equity beyond 49 per cent.

    But, the media was awash once again with the news that it had restarted negotiations with RBNL just two days ago. When Indiantelevision.com got in touch with the ZEEL corporate spokesperson whether this was true, this is the response, we got: “From time to time, we keep exploring strategic opportunities for entering new businesses or in our existing businesses. However, as a matter of policy, we do not comment on media speculations,” the response said.

    To us, this sounds ominously familiar. This is the exact response ZEEL and Essel had issued when news reports appeared about the sale of its TEN Sports business to Sony Pictures Networks India. When speculation about Siticable buying DEN Networks gathered steam, a similar line was thrown.

    Ditto was the response with Dish TV’s ongoing discussions to acquire Videocon d2h from the debt-laden-and struggling Videocon group. Dish TV is a part of the Essel group as well.

    And, we all know what happened with Ten Networks. After denying it for a few months, SPNI bought it over for a cool Rs 2,600 crore.

    The DEN Networks talks turned out to be just talks. Now, the Sameer Manchanda-promoted cable company has got an infusion of cash and the rumour mills state that it will be acquired by Star India at some stage.

    As far as Dish TV is concerned, the company recently moved its registered corporate office from Noida to a Mumbai address of Marathon Futurex, which also houses other Essel group ventures. Observers believe this move could help facilitate its Videocon d2h acquisition. The two groups will have to approach only one court – the Bombay High Court — for approvals. Whether this is true or not, only time will tell.

    Overall, the media industry is ripe for consolidation. And, the hungry to grow, Zee (Essel) group is scouting around for opportunities, chatting with almost everyone who could be a potential good addition to its portfolio. Analysts feel the prospective RBNL deal will be a win-win for Ambani as well as for the Essel group, of which ZEEL is a part.

    The Essel group is present in television, films, print, music, events and live, and digital. What’s missing is radio. The acquisition, when and if that does happen, will herald the group’s entry into that segment as well. It recently announced its diversification into that segment in the UAE by leasing the frequency, which was operated by the radio channel Hum. The lease becomes active cum January 2017.

    RBNL will also add a Bhojpuri regional channel BIG Ganga and a comedy-centric national channel Big Magic to the Zee TV bouquet. Both these genres are strikingly absent in the ZEEL bouquet. In July 2015, ZEEL gobbled up Odia channel Sarthak TV for Rs 115 crore.

    Anil Ambani has been attempting to find buyers for his media and entertainment assets for some time now. Lured by the sector, he rushed into it in the previous decade setting up a DTH venture, poured investments in DreamWorks, in his Bollywood studio, in a VFX studio and in shooting floors, a TV production company, and in radio and TV broadcasting.

    The oodles of cash he kept on pumping into the sector have not got the return he expected. One bright spark has been his radio and TV venture, especially the FM station and the regional channels. Recently, the group announced that it was carving out its DTH venture Reliance Digital TV into a separate company from Reliance Communications.

    Observers say that the Zee group and RBNL are examining ways of slicing and dicing the RBNL business to facilitate a buyout. Among the options being considered is ingesting FM radio into Zee Media, and incorporating the Big Magic channels into ZEEL. According to BSE filings, Zee Media does not have any significant foreign holding. Hence, the foreign investment cap will not come in its way of digesting Big FM. And ZEEL’s acquisition of the Big channels is but a shoo-in.

    Of course, pricing has to be agreed between the two parties. Figures of Rs 2,000 crore-Rs 2,500 crore that are being bandied about seem far too inflated considering the scale of RBNL’s radio and TV business. The acquisition tag could more likely be at half of that. Or, if one stretches ones pockets, at a discount of Rs 500 crore to that.

    We, as media observers, can only wait and watch to see which way the pendulum swings.

  • Quo Vadis ZEEL-RBNL

    Quo Vadis ZEEL-RBNL

    MUMBAI: It was hardly a month or so ago that ZEEL MD Punit Goenka had issued a denial, saying that it was not interested in acquiring the radio and TV business of the Anil Ambani-owned Reliance Broadcast Networks Ltd (RBNL) because radio regulations do not permit FDI equity beyond 49 per cent.

    But, the media was awash once again with the news that it had restarted negotiations with RBNL just two days ago. When Indiantelevision.com got in touch with the ZEEL corporate spokesperson whether this was true, this is the response, we got: “From time to time, we keep exploring strategic opportunities for entering new businesses or in our existing businesses. However, as a matter of policy, we do not comment on media speculations,” the response said.

    To us, this sounds ominously familiar. This is the exact response ZEEL and Essel had issued when news reports appeared about the sale of its TEN Sports business to Sony Pictures Networks India. When speculation about Siticable buying DEN Networks gathered steam, a similar line was thrown.

    Ditto was the response with Dish TV’s ongoing discussions to acquire Videocon d2h from the debt-laden-and struggling Videocon group. Dish TV is a part of the Essel group as well.

    And, we all know what happened with Ten Networks. After denying it for a few months, SPNI bought it over for a cool Rs 2,600 crore.

    The DEN Networks talks turned out to be just talks. Now, the Sameer Manchanda-promoted cable company has got an infusion of cash and the rumour mills state that it will be acquired by Star India at some stage.

    As far as Dish TV is concerned, the company recently moved its registered corporate office from Noida to a Mumbai address of Marathon Futurex, which also houses other Essel group ventures. Observers believe this move could help facilitate its Videocon d2h acquisition. The two groups will have to approach only one court – the Bombay High Court — for approvals. Whether this is true or not, only time will tell.

    Overall, the media industry is ripe for consolidation. And, the hungry to grow, Zee (Essel) group is scouting around for opportunities, chatting with almost everyone who could be a potential good addition to its portfolio. Analysts feel the prospective RBNL deal will be a win-win for Ambani as well as for the Essel group, of which ZEEL is a part.

    The Essel group is present in television, films, print, music, events and live, and digital. What’s missing is radio. The acquisition, when and if that does happen, will herald the group’s entry into that segment as well. It recently announced its diversification into that segment in the UAE by leasing the frequency, which was operated by the radio channel Hum. The lease becomes active cum January 2017.

    RBNL will also add a Bhojpuri regional channel BIG Ganga and a comedy-centric national channel Big Magic to the Zee TV bouquet. Both these genres are strikingly absent in the ZEEL bouquet. In July 2015, ZEEL gobbled up Odia channel Sarthak TV for Rs 115 crore.

    Anil Ambani has been attempting to find buyers for his media and entertainment assets for some time now. Lured by the sector, he rushed into it in the previous decade setting up a DTH venture, poured investments in DreamWorks, in his Bollywood studio, in a VFX studio and in shooting floors, a TV production company, and in radio and TV broadcasting.

    The oodles of cash he kept on pumping into the sector have not got the return he expected. One bright spark has been his radio and TV venture, especially the FM station and the regional channels. Recently, the group announced that it was carving out its DTH venture Reliance Digital TV into a separate company from Reliance Communications.

    Observers say that the Zee group and RBNL are examining ways of slicing and dicing the RBNL business to facilitate a buyout. Among the options being considered is ingesting FM radio into Zee Media, and incorporating the Big Magic channels into ZEEL. According to BSE filings, Zee Media does not have any significant foreign holding. Hence, the foreign investment cap will not come in its way of digesting Big FM. And ZEEL’s acquisition of the Big channels is but a shoo-in.

    Of course, pricing has to be agreed between the two parties. Figures of Rs 2,000 crore-Rs 2,500 crore that are being bandied about seem far too inflated considering the scale of RBNL’s radio and TV business. The acquisition tag could more likely be at half of that. Or, if one stretches ones pockets, at a discount of Rs 500 crore to that.

    We, as media observers, can only wait and watch to see which way the pendulum swings.

  • Last date for application in auction of second batch of 266 FM channels in Phase III extended by one week

    Last date for application in auction of second batch of 266 FM channels in Phase III extended by one week

    NEW DELHI: The last date for receipt of applications for the e-auction of the second batch of FM Radio Phase-III channels comprising 266 channels in 92 cities has been extended to 8 August 2016 by 5 pm.

    Similarly in an amendment issued today, the Information and Broadcasting Ministry has extended the last date for issuing clarifications to 26 July 2016, Earlier, these dates were 1 August and 21 July 2016 respectively.

    The auctions, which include 227 channels in 69 fresh cities and 39 channels in 23 existing cities which had remained unsold as there were no bids, are to be held around mid-September this year.

    Changes in Networth Clause

    The Ministry also made some changes in the networth requirements of applicants, which can be seen on its website mib.nic.in. Essentially, this does away with networth till 30 June 2016 but remains confined to three years or from incorporation till 31 March 3016. However, provisional financial statement will have to be given till 30 June 2016.

    Recent increase in FDI increase included

    Additionally, the Ministry made public some queires in the NIA and their answers from the Ministry. Among other clarifications, the Ministry said that the FDI Cap of 26% prescribed under FM Radio Phase III Policy guidelines of 25 July 2011 were being raised to 49% in accordance with the Ministry order of 21 July 2016.

    As in the first stage, the e-auctions will be conducted by C1 India Private Ltd and the process will commenced on 20 June with the notice inviting applications (NIA).

    A Pre Bid conference was held on 11 July 2016 at 2:30 PM and the last date for seeking clarifications on NIA was 14 July 2016 by 12:00 noon.

    The last date for submission of Applications will be followed on 16 August with the publication of ownership details of applicants. The Bidder Ownership Compliance Certificate will be issued on 22 August 2016.

    The Pre-Qualification of Bidders will be done by 1 September 2016 or completion of requisite formalities whichever is later, followed four to five days later by a Mock Auction.

    The main auction will start four days after the mock auction.

  • Last date for application in auction of second batch of 266 FM channels in Phase III extended by one week

    Last date for application in auction of second batch of 266 FM channels in Phase III extended by one week

    NEW DELHI: The last date for receipt of applications for the e-auction of the second batch of FM Radio Phase-III channels comprising 266 channels in 92 cities has been extended to 8 August 2016 by 5 pm.

    Similarly in an amendment issued today, the Information and Broadcasting Ministry has extended the last date for issuing clarifications to 26 July 2016, Earlier, these dates were 1 August and 21 July 2016 respectively.

    The auctions, which include 227 channels in 69 fresh cities and 39 channels in 23 existing cities which had remained unsold as there were no bids, are to be held around mid-September this year.

    Changes in Networth Clause

    The Ministry also made some changes in the networth requirements of applicants, which can be seen on its website mib.nic.in. Essentially, this does away with networth till 30 June 2016 but remains confined to three years or from incorporation till 31 March 3016. However, provisional financial statement will have to be given till 30 June 2016.

    Recent increase in FDI increase included

    Additionally, the Ministry made public some queires in the NIA and their answers from the Ministry. Among other clarifications, the Ministry said that the FDI Cap of 26% prescribed under FM Radio Phase III Policy guidelines of 25 July 2011 were being raised to 49% in accordance with the Ministry order of 21 July 2016.

    As in the first stage, the e-auctions will be conducted by C1 India Private Ltd and the process will commenced on 20 June with the notice inviting applications (NIA).

    A Pre Bid conference was held on 11 July 2016 at 2:30 PM and the last date for seeking clarifications on NIA was 14 July 2016 by 12:00 noon.

    The last date for submission of Applications will be followed on 16 August with the publication of ownership details of applicants. The Bidder Ownership Compliance Certificate will be issued on 22 August 2016.

    The Pre-Qualification of Bidders will be done by 1 September 2016 or completion of requisite formalities whichever is later, followed four to five days later by a Mock Auction.

    The main auction will start four days after the mock auction.

  • I&B Sector brings in over $1.25 billion FDI between October 2014 and May 2016

    I&B Sector brings in over $1.25 billion FDI between October 2014 and May 2016

    NEW DELHI: India earned foreign exchange amounting to $9565.33 million from computer software and hardware, electronics and Information & Broadcasting (including print media) sectors between October 2014 and May 2016.

    Of this, the information and broadcasting sector (I&B( alone yielded $1253.76 million FDI equity inflows, according to a report on the Make in India presented by Commerce and Industry Minister Nirmala Sitharaman in Parliament.

    The total FDI inflows for these years was $61,585.42 million, the Minister said in an analysis of 58 industries.

    The I&B Sector brought in FDI amounting to $205.22 million between October 2014 and March 2015, $1,009.34 million between April 2015 and March 2016, and $39.2 million for the two months of April and May this year.

    The Minister said the `Make in India’ initiative was launched in September 2014 with the aim of promoting India as an important investment destination and a global hub for manufacturing, design, and innovation. Thereafter, during the period October 2014 to May 2016, the FDI equity inflow has increased by 46 per cent, from $42.31 billion to $61.58 billion in comparison to previous 20 months (February, 2013 to September, 2014). FDI inflow has also increased by 37 per cent from $62.39 billion to $85.75 billion.

    India has been ranked third in the list of top prospective host economies for 2016-18 in the World Investment Report (WIR) 2016 of UNCTAD.

    To further boost the entire investment environment and to bring in foreign investments in the country, the government is taking various measures like opening up FDI in many sectors; carrying out FDI related reforms and liberalization and improving ease of doing business in the country. Steps are being taken for development of support infrastructure to facilitate setting up of industries such as transport infrastructure, utility infrastructure etc. The Department of Industrial Policy and Promotion has advised ministries and state governments to simplify and rationalize the regulatory environment through business process re-engineering and use of information technology.

  • I&B Sector brings in over $1.25 billion FDI between October 2014 and May 2016

    I&B Sector brings in over $1.25 billion FDI between October 2014 and May 2016

    NEW DELHI: India earned foreign exchange amounting to $9565.33 million from computer software and hardware, electronics and Information & Broadcasting (including print media) sectors between October 2014 and May 2016.

    Of this, the information and broadcasting sector (I&B( alone yielded $1253.76 million FDI equity inflows, according to a report on the Make in India presented by Commerce and Industry Minister Nirmala Sitharaman in Parliament.

    The total FDI inflows for these years was $61,585.42 million, the Minister said in an analysis of 58 industries.

    The I&B Sector brought in FDI amounting to $205.22 million between October 2014 and March 2015, $1,009.34 million between April 2015 and March 2016, and $39.2 million for the two months of April and May this year.

    The Minister said the `Make in India’ initiative was launched in September 2014 with the aim of promoting India as an important investment destination and a global hub for manufacturing, design, and innovation. Thereafter, during the period October 2014 to May 2016, the FDI equity inflow has increased by 46 per cent, from $42.31 billion to $61.58 billion in comparison to previous 20 months (February, 2013 to September, 2014). FDI inflow has also increased by 37 per cent from $62.39 billion to $85.75 billion.

    India has been ranked third in the list of top prospective host economies for 2016-18 in the World Investment Report (WIR) 2016 of UNCTAD.

    To further boost the entire investment environment and to bring in foreign investments in the country, the government is taking various measures like opening up FDI in many sectors; carrying out FDI related reforms and liberalization and improving ease of doing business in the country. Steps are being taken for development of support infrastructure to facilitate setting up of industries such as transport infrastructure, utility infrastructure etc. The Department of Industrial Policy and Promotion has advised ministries and state governments to simplify and rationalize the regulatory environment through business process re-engineering and use of information technology.