FIPB to decide on DSE's stake sale tomorrow

New Delhi, Aug 30 (UNI) The Foreign Investment Promotion Board (FIPB) will meet here tomorrow to consider the foreign direct investments from New Vernon Private Equity Ltd and Passport Global Master Fund SPC Ltd to pick up five per cent stake each in Delhi Stock Exchange (DSE) with the inflow of up to Rs 10.6 crore each.

The demutualisation process of the DSE, whereby investors will pick up 51 per cent stake in the oldest stock exchange of the country, includes 15 per cent foreign investment and the FIPB had recommended and subsequently the Finance Minister P Chidambaram, had given his approval to four foreign investors for picking up to five per cent each in the DSE.

However, one investor pulled out and hence FIPB will consider the fresh proposals from Vernon and Passport Global Master tomorrow.

The four foreign investors who received FIPB nod earlier, were Wilmette Holdings, Mauritius and three Kuwait-based firms namely, Noor Financial Investment Company, Ikarus Industrial Petroleum Company and Kuwait Privatisation Projects Holding Company. However, it is unclear as to which investor pulled out.

Italian jeans, casuals and other clothing manufacturer, Diesel's proposal to form a joint venture for the creation of a new company called Diesel India Fashion Arvind Pvt Ltd, representing the official arrival of the Diesel brand in the Indian market will also be taken up in the FIPB meeting.

Diesel has chosen to partner in this initiative with Arvind Mills Ltd, one of the main players of the textile market, with offices set in Bangalore.

Diesel India Fashion Arvind Pvt Ltd will start its operations by opening two flagship stores, one here and one in Mumbai, before the end of this year. Diesel plans to open 15 stores within the next three years.

The other proposals expected to be taken up is the Publicis Group Holding B V, Netherlands direct investment. It is reported that French advertising major is going to acquire Capital Advertising.

For Publicis, the acquisition is an effort to catch up to WPP Group, based in London, which is far and away the leader in India.

WPP owns, has significant stakes in some of the biggest creative agencies operating here.

The amended proposal of Flemingo Duty Free Shops Pvt Ltd groups investment of Rs 100 crore in setting up duty free shops at airports and sea ports and in total 23 proposals will come up for discussion before FIPB.

FIPB and Finance Minister P Chidambaram in its meeting on July 13 had cleared Flemingo's proposal but the company has since then ammended its proposal which necessiated a further FIPB approval.

UNI