CCEA clears FDI proposals of HDFC Bank, Lupin

The Cabinet Committee on Economic Affairs (CCEA) has cleared foreign direct investment (FDI) proposals of HDFC Bank and Lupin on Wednesday.

Both the proposals had earlier been approved by the Foreign Investment Promotion Board (FIPB), but had to be routed through the CCEA as they involved fresh foreign investments over ₹1,200 crore.

The CCEA’s nod will allow HDFC Bank to raise ₹10,000 crore from foreign investors.

The matter had been pending for long before the FIPB as mortgage lender HDFC’s 22.5 per cent stake in HDFC Bank was also considered FDI by the Government, which required HDFC Bank to revise its initial proposal.

In its revised proposal, which was finally cleared by the FDI in November 2014, HDFC Bank sought to increase FDI from 49 per cent to 74 per cent instead of its earlier proposal of 67.55 per cent.

The CCEA also gave its approval to the proposal of Lupin Ltd to increase its aggregate limit of investment by foreign institutional investors (FIIs) and their sub-accounts registered with SEBI, from 33 per cent to 49 per cent.

The approval would result in foreign investment of ₹6,099 crore, an official release said.