Millennium Post

RBI removes curbs on FII buys of Axis Bank shares

‘...consequent upon approval from Government of India for increase in foreign investment from 49 per cent to 62 per cent of the paid up equity share capital of Axis Bank, the aggregate share holdings through FII/NRI/PIO/FDI in Axis Bank Ltd have gone below the prescribed threshold caution limit stipulated under the extant FDI Policy,’ RBI said.

Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect, RBI added further.

The government a day earlier had approved increasing foreign shareholding in Axis Bank to 62 per cent that would bring in an inflow of about Rs 7,250 crore.

After the hike in stake by foreign investors, the bank will become foreign-owned, thus all investment in the future in bank's subsidiaries will be governed under foreign direct investment (FDI) policy.

The bank has seven subsidiaries — Axis Capitals, Axis Finance Pvt Ltd, Axis Private Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company, Axis Mutual Fund Trustee Ltd and Axis UK Ltd.

Life Insurance Corporation, General Insurance Corporation, New India Assurance, National Insurance Company and Administrator of Specialised Undertaking of the Unit Trust of India are the promoters of Axis Bank.

Axis Bank shares ended at Rs 1290.55 apiece on BSE on Friday, 0.59 per cent lower than previous close.

Competition panel okays United Spirits’ deal to sell TN distillery

New Delhi: Fair trade watchdog Competition Commission of India (CCI) has cleared Vijay Mallya-led United Spirits’ proposed sale of a distillery in Tamil Nadu to Enrica Enterprises, as the deal does not raise adverse competition concerns. The deal involves hiving off entire operations at the unit of United Spirits Ltd that manufactures Indian Made Foreign Spirits to Enrica ‘by way of slump sale on a going concern basis’.  Post-deal, Enrica would make certain IMFS brands of United Spirits using technology and know-how and under the trademark of the Vijay Mallya firm. CCI said ‘the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the commission hereby approves the proposed combination under...the (Competition) Act’.

According to the commission, the manufacture and sale of IMFS in Tamil Nadu ‘is highly regulated by the Tamil Nadu State Marketing Corporation, which has the exclusive privilege of conducting trade in IMFS in Tamil Nadu’. ‘There is also the presence of a number of manufacturers of IMFS in Tamil Nadu and as already noted, EEPL (Enrica Enterprises Private Ltd) and its promoters are currently not engaged in the business of IMFS in the state of Tamil Nadu,’ the commission added.

Bangalore-based USL is engaged in the manufacture and sale of IMFS, while Enrica is an unlisted firm incorporated under the laws of India and has its registered office in Chennai and is presently not carrying out any business operations.
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