Print    Email

Email To		[Close]
		You must make entries in all fields
Your Email
Your Name
Send to Email
		Send

In the recent meeting of the Foreign Investment Promotion Board (FIPB), the Government body regulating the foreign investments in the subcontinent has cleared Star India Holdings BV proposal to hike its stake in TS Investments.

As per the details on the website of the Finance Ministry, Star India Holdings can now acquire 49% shareholding stake in TS Investments, a Tata Group Company. As reported earlier this increase in stake in TS Investments would facilitate Star India Holdings plans to raise its shareholding in the DTH joint-venture operation Tata Sky.

The current shareholding patterns in Tata Sky comprise of 20% ownership of Star India, 10% stake held by Mauritius-based Baytree Investments has 10% and the remaining 70% by Tata Sons. With acquisition of stake in TS Investments, the shareholding pattern for Star India would witness increase of upto 30% while Tata Sons’ stake will come down to around 50%.

Besides the approval for acquisition of stake, FIPB has also allowed infusion of Rs 324 crore of FDI/NRI inflows in Tata Sky. This investment is expected to be utilised by the company to counter the prevailing competition in the India direct-to-home (DTH) service market, which currently has seven players combating challenges of low ARPU (average revenue per user) and high cost of operation.

Other cases for the media and entertainment industry approved in the recent round of meeting include:

• Amar Chitra Katha Pvt. Ltd - Induction of Foreign Investment to carry out the business of publishing pictorial magazines and comic books
• Asianet Communications Limited - Induction of foreign equity to undertake the business of broadcasting non-news and current affairs television channels
• Neo Sports Broadcast Pvt. Limited - To make an amendment in the FC approval

 Related Stories:

• Star India's proposal for acquisition of stake in Tata Sky deferred by FIPB
• Star India's proposal to hike stake in Tata Sky postponed by FIPB
• News Corp planning to increase its stake in DTH venture Tata Sky