New Delhi: The Foreign Investment Promotion Board (FIPB) on Friday gave conditional nod to budget carrier IndiGo's proposal for converting its co-founder's 48% FDI into NRI investment so that it could clear up the 49% stake which an Indian carrier can sell to foreign companies, airlines or FIIs.
"IndiGo's proposal has been cleared subject to approval of high court," an official said after a meeting of the board that is headed by finance secretary Arvind Mayaram.
IndiGo sought the nod just ahead of an impending IPO so that it can sell shares to FIIs too. A number of foreign airlines like Qatar Airways have also expressed interest in buying into IndiGo.
IndiGo's holding company InterGlobe Aviation Ltd is currently 48% owned by co-founder Rakesh Gangwal's US-based Caelum Investments. This investment falls under FDI and current rules allow an airline to have only 49% FDI from foreign airlines and companies.
02/08/14 Times of India
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"IndiGo's proposal has been cleared subject to approval of high court," an official said after a meeting of the board that is headed by finance secretary Arvind Mayaram.
IndiGo sought the nod just ahead of an impending IPO so that it can sell shares to FIIs too. A number of foreign airlines like Qatar Airways have also expressed interest in buying into IndiGo.
IndiGo's holding company InterGlobe Aviation Ltd is currently 48% owned by co-founder Rakesh Gangwal's US-based Caelum Investments. This investment falls under FDI and current rules allow an airline to have only 49% FDI from foreign airlines and companies.
02/08/14 Times of India
