US retail giant Wal-Mart Stores Inc has invested Rs 455.8 crore in a subsidiary of Bharti Ventures in 2010 via its Mauritius arm but the RBI has no FDI data of the same, Parliament was informed on today.
In a written reply to the Rajya Sabha, Commerce and Industry Minister Anand Sharma said on March 29, 2010, Cedar Support Services Ltd (a subsidiary of Bharti Ventures) issued 45.58 crore compulsorily convertible debentures (CCDs) with face value of Rs 10 each.
These CCDs were convertible into 42,59,65,859 equity shares of Rs 10 each at a premium of 70 paisa per share. CCDs are a type of debenture in which the whole value of the debenture must be converted into equity by a specified time.
“The debentures are unsecured and convertible at the option of the subscriber (Wal-Mart Mauritius Holdings Co Ltd) within 18 months from the date of issue,” he said.
“As per the balance sheet for the period January 1, 2011 to December 31, 2011 filed by Cedar Support Services, it is reported that, on March 29, 2010, the company issued 455,800,000, 0 per cent CCDs with face value of Rs 10 each convertible into 425,965,859 equity shares of Rs 10 each at a premium of Rs 0.70 per share,” the minister said.
He said that on conversion, the subscriber will have 49 per cent holding in the equity on the company.
Sharma also said: “The RBI has reported that its database does not have any record of FDI in Cedar Support Services Ltd”.
As on June 25, except 6 shares, the remaining 44.33 crore shares were held by Bharti Ventures in Cedar Support Services.