RBI has no data of Wal-Mart's Rs455 crore in Bharti unit
MDT/PTI 06 September 2012

While Wal-Mart has invested Rs455.8 crore in Cedar Support Services, a unit of Bharti Ventures, through Mauritius, the RBI do not have data of this deal

New Delhi: US retail giant Wal-Mart Stores Inc has invested Rs455.8 crore in a subsidiary of Bharti Ventures in 2010 via its Mauritius arm but the Reserve Bank of India (RBI) has no data of the same, reports PTI.


In a written reply to the Rajya Sabha, Commerce and Industry Minister Anand Sharma said on 29 March 2010, Cedar Support Services Ltd (a subsidiary of Bharti Ventures) issued 45.58 crore compulsorily convertible debentures (CCDs) with face value of Rs10 each.


These CCDs were convertible into 42.59 crore equity shares of Rs10 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 1 January 2011 to 31 December 2011 filed by Cedar Support Services, it is reported that, on 29 March 2010, the company issued 45.58 crore zero percent CCDs with face value of Rs10 each convertible into 42.59 crore equity shares of Rs10 each at a premium of Rs0.70 per share," the minister said.


He said that on conversion, the subscriber will have 49% 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 25th June, except six shares, the remaining 44.33 crore shares were held by Bharti Ventures in Cedar Support Services.

Free Helpline
Legal Credit