Comments
The Cabinet Committee on Economic Affairs (CCEA) has given its nod for the proposal of ATC Asia Pacific Pte Ltd Singapore to acquire 51 per cent shareholding in Viom Networks Ltd by way of transfer from existing shareholders.
The approval would result in a total foreign direct investment inflow of ₹5,856.51 crore into the telecom infrastructure of the country which will spur economic growth, besides fostering inclusiveness and equity.
Andrew Yule The CCEA has also given its nod for conversion of Working Capital Term Loan (WCTL) amounting to ₹29.91 crore from Bank of Baroda (BoB) into equity by issuing requisite number of equity shares of Andrew Yule & Co Ltd (AYCL)
The price will be based on market price determined as per Securities and Exchange Board of India (SEBI) Guidelines on the date of acquiring of shares by BoB with face value of ₹2 per share.
The conversion of WCTL into equity will bring down the cost of debt servicing by AYCL by ₹2.86 crore per annum, resulting in improved profitability and liquidity of AYCL in coming years and thereby providing an opportunity to finance working capital needs of existing and new businesses.
It would result in improved Debt Equity ratio for AYCL. This along with substantial amount of Securities Premium will form part of net worth of Company and will enhance the strength of its balance sheet.
An official release said this is expected to increase growth and profitability of AYCL and in turn is likely to translate into better share price of AYCL at the time of further disinvestment of Government shares of YCL as per SEBI Guidelines. This will be implemented within a period of three months.
The Union Cabinet has given its approval for increasing the framework agreement between Exim Bank of India and a consortium of Iranian banks lead by Central Bank of Iran for financing the purchase of goods and services from India to ₹3,000 crore from ₹900 crore.
This will be done by utilising the Export Development Fund (EDF). The proposal provides for domiciling two contracts of export of steel rails by STC and for the Chabahar Port Development project previously approved by the Cabinet under EDF.
The proposal will promote the country’s exports with Iran. It will also deepen India’s relationship with Iran as a strategic partner, an official release said.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.