Tikona Digital Networks has sought approval from the Foreign Investment Promotion Board (FIPB) for acquiring HCL Infinet. The deal was announced in January but is awaiting regulatory approvals.
It is believed that this delay is because Tikona had five foreign investors and so had to secure FIPB approval for making HCL Infinet its subsidiary.
The five investors include Goldman Sachs Investment Partners, Oak India Investments, Green Lotus Limited and Indivision India Partners. All the foreign investments in Tikona have been routed through Mauritius.
Tikona had earlier received FIPB approval for FDI up to 71 per cent. The proposal to acquire HCL Infinet has been circulated among various ministries for comments. It is believed that the Department of Industrial Policy and Promotion has given an in-principle approval to the deal as long as the FDI norms governing the telecom sector are not breached.
