Kotak Mahindra proposal before FIPB on April 30

The Foreign Investment Promotion Board (FIPB), headed by Finance Secretary Rajiv Mehrishi, will meet on April 30 to discuss 41 proposals.

These including one from Kotak Mahindra Bank (KMB) to raise its foreign investment ceiling to 55 per cent. At present, foreign investors together hold 48.5 per cent in it, pursuant to its merger with ING Vysya Bank. Foreign investors can acquire up to 49 per cent stake in Indian lenders through the automatic route; beyond this, FIPB permission is required.

In the 48.55 per cent, institutional investors have 33.46 per cent, foreign portfolio investors hold 2.43 per cent, other foreign bodies 8.11 per cent and foreign banks 3.6 per cent. In November, KMB had announced the acquisition of mid-sized private bank ING Vysya in an all-share deal worth Rs 15,000 crore.

Kotak Mahindra Bank on Tuesday said it has allotted 139.2 million shares to the shareholders of ING Vysya Bank as part of the merger of the two lenders in an all-share deal.

Among other proposals, FIPB will consider those of IIFL Holdings, Blue Dart Express, Baring Private Equity Asia, Thornton Tommaseti, INX Music, Integrated Database, Huawei Telecommunications and BASF Chemicals India.

Kotak Mahindra Group