Rediff ADR among new FDIs cleared

NEW DELHI, JAN. 31. The leading Internet news portal Rediff Communication's $75 million American depository receipts issue is among the 46 foreign investment proposals worth Rs. 405.73 crores cleared by the Government.

After the Rs. 322.5 crore ADR issue, the foreign stake in Rediff Communication's would go up to 49 per cent from the present 41.46 per cent, an official release said here today.

Rediff is planning a listing on Nasdaq through the ADR issue, which would reduce the stake of the promoter Mr. Ajith Balakrishnan in the company.

The Union Commerce and Industry Minister, Mr. Murasoli Maran, also approved the foreign direct investment proposals of Proagro Seed, HCL Holdings, Alsthom and United Teleshopping and Marketing.

Proagro Seed has been allowed to buyout the entire stake in its Indian venture for development and marketing of high yielding hybrid seeds of various crops for Rs. 11 lakhs. The parent seed company already has a stake of 97.5 per cent in the Indian venture.

The proposal by United Teleshopping to raise the foreign equity from 45.45 per cent to 57.14 per cent was also cleared by the Minister. The clearance is based on the recommendations of the Foreign Investment Promotion Board (FIPB).

- PTI

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