Cinema Capital Venture Fund (CCVF) has got the FIPB (foreign investment promotion board) nod to bring in Rs 500 million as part of its fund-raising programme to build a corpus of Rs 7.5 billion for supporting financing needs of film companies.
CCVF had applied to the FIPB to get approval for a fund inflow in the region between Rs 500 million and Rs 2 billion, says the company's promoter Samir Gupta.
The induction of foreign investments will be in units of an Indian venture capital fund scheme, organised as a trust and registered under the Securities and Exchange Board of India (Sebi).
“We plan to raise foreign capital only after the general elections,” says Gupta.
CCVF had earlier kicked off its second round of fund-raising activity in India. The first Sebi-registered film venture capital fund had mopped up Rs 1.75 billion late last year, but is yet to invest in any projects.
CCVF is planning to raise Rs 5 billion with a greenshoe option of Rs 2.5 billion at a time when markets across the world are hit by financial woes.
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Meanwhile, Mumbai-based What’s On India Media has been permitted by the Finance Ministry to hold a television channel licence for uplinking a non-news and current affairs channel from India. The proposal does not envisage any fresh inflow of foreign direct investment.
The FIPB has also approved the proposal by Reed Infomedia (I) Pvt. Ltd. to publish additional magazines, without any fresh inflow of FDI.
Broadband Pacenet's proposal for induction of foreign equity up to 74 per cent has, however, been deferred. UK-based private equity firm Ashmore Investment Management Ltd, which has acquired 49 per cent stake in Digicable Network, plans to pick up 74 per cent in Broadband Pacenet. The promoters of Broadband Pacenet also run Digicable, which has set up a pan India presence in cable TV operations.
Source: Indian Television