The Competition Commission of India (CCI) has approved the following proposals on 2nd April 2024.
Acquisition of MG Motor India by IndoEdge India Fund- LVF scheme:
CCI has approved the acquisition of up to approximately 8% share capital, 8.70% of the voting and economic rights, of MG Motor India(Target) along with certain rights by IndoEdge India Fund- Large Value Fund (LVF) schemes(Acquirer).
About Acquirer:
i.The Acquirer is an LVF for accredited investors and a scheme offered by IndoEdge India Fund.
ii.IndoEdge is a contributory determinate trust registered with the Securities and Exchange Board of India(SEBI) as a category-II Alternative Investment Fund, under the SEBI(AIF) Regulation, 2012.
About Target:
i.Target is a company incorporated in India that specialises in automobile equipment manufacturing and after-sale services.
ii.It mainly focuses on the production and sale of passenger cars, including Electric Vehicle (EV) under its brand “MG”.
Acquisition of CCPS in Northern Arc Capital Limited by IFC:
CCI has approved the acquisition of fully paid Series C Compulsorily Convertible Preference Shares(CCPS) (Subscription shares) in Northern Arc Capital Limited (Target) by the International Finance Corporation(IFC).
- The subscription shares approximately accounts 6% of the total issued and paid-up share capital of Target on a fully diluted basis along with certain affirmative voting rights and board nomination rights.
Points to note:
i.IFC, a member of the World Bank Group, is an international organization headquartered at Washington D.C., The United States of America(USA).
ii.It offers investment, advisory and asset management services to encourage private sector development in developing countries.
iii.Northern Arc is an un-listed Non-Banking Financial Company (NBFC) in India. It offers efficient and reliable access to debt capital to under-served households and enterprises.
Acquisition NFCL Assets & 100% shares of ZeroC by AMG India
CCI approved the acquisition of Nagarjuna Fertilizers and Chemicals Limited(NFCL) assets and 100% shareholding of Greenko ZeroC Private Limited (ZeroC) by AMG India using proceeds of investments received from the AMG Entities, Baker Street Investment Pte. Ltd. (BSI), Gentari International Renewables Pte. Ltd. (Gentari), and Platinum Rock B 2014 RSC Limited.
Points to note:
i.NFCL is a public listed company engaged in Urea manufacturing and micro-irrigation products. .
ii.It has one manufacturing plant in Kakinada, Andhra Pradesh(AP).
iii.NFCL Assets refers to certain assets of NFCL presently used for the urea and micro-irrigation business, 3 micro irrigation manufacturing plants in Nacharam and Sadashivpet (Telangana) and Halol, Gujarat.
Additional info:
i.AMG Entities includes AM Green B.V. (AMG), AM Green Ammonia Holdings B.V. (AMGAH), AM Green Ammonia B.V. (AMGA), and AM Green Ammonia (India) Private Limited (AMG India). these are newly incorporated entities and are currently not engaged in any business activities.
ii.BSI is a private limited company based in Singapore. It is a part of the investment holding companies managed by GIC Special Investments Private Limited.
iii.Gentari, incorporated in November 2022, is a clean energy company controlled by the PETRONAS Group.
Acquisition of 10.39% shares of Annapurna Finance by Piramal Alternatives Trust
CCI has approved the acquisition of 10.39% shareholding of Annapurna Finance Private Limited (AFPL) and subscription to its certain debentures by Piramal Alternatives Trust Fund.
Background:
Piramal Alternatives Trust Fund officially signed an agreement with AFPL in January 2024, to acquire a 10.39% stake in AFPL for a cash consideration of Rs 300 crore by purchasing equity shares and subscription to optionally convertible debentures amounting to Rs 300 crore.
Points to note:
i.Piramal Alternatives Trust belongs to Piramal Enterprises Limited and provides customized financing solutions to high-quality companies.
ii.AFPL is a non-deposit-taking NBFC registered with the Reserve Bank of India(RBI) under RBI Act,1934. It ranks among the top 10 Micro Finance Institutions(MFIs) in India. It mainly offers loans to micro entrepreneurs in India.
Acquisition of Sharekhan Ltd & HVDPL by MACM and MAS
CCI has approved the acquisition of 100% equity stake of Sharekhan Limited(SKL) and Human Value Developers Private Limited (HVDPL) collectively by Mirae Asset Capital Markets(India) Private Limited (MACM) and Mirae Asset Securities Co. Limited (MAS) respectively.
Points to note:
i.MAS is a public limited company listed on the Korea Exchange. Its principal business is wealth management, sales and trading etc.
ii.MACM is 100% subsidiary of MAS and is a financial advisory, brokerage firm. It offers broking, advisory and investment banking services in India.
iii.Sharekhan Limited is a retail brokerage firm in India. It is currently engaged in the business of stock brokering, commodities/currency derivatives broking and related products and services.
iv.HVDPL is an investment holding company that holds a certain stake in SKL.
Approved subscription of CCPS of Pritam International Pvt. Limited
Competition Commission of India(CCI) on 2nd April, 2024, approved the subscription compulsorily convertible preference shares of Pritam Private Ltd.(Target) by India Advantage Fund S5(IAF S5 I), HCL Corporation Private Limited, Mirabilis Investment Trust(Mirabilis), Aashil Apurva Shah and Ansh Anshit Shah(collective Acquirers).
Points to note:
i.IAF S5 1 is registered with the Security Board of India (SEBI) as a category II Alternative Investment Funds (AIF).
ii.HCL Corp, a part of HCL Group, is a registered NBFC.
Approved Subscription to 14.25 crore equity shares of Max Life Insurance by Axis Bank
CCI has approved the subscription to 14,25,79,161 equity shares of Max Life Insurance Company Limited by Axis Bank Limited.
Points to note:
In August 2023, the board of Axis Bank approved the proposal to infuse Rs 1612 crore in Max Life, resulting in Axis Bank’s direct state in Max Life increasing to 16.22% and the collective state of Axis entities to 19.02%.
- This will increase Axis Bank direct stake in Max Life Insurance to 16.22% and the collective stake of Axis Bank entities will increase to 19.02%.
- The shares were acquired on a preferential basis at a fair market value of Rs 113.06 a share.
About the Competition Commission of India(CCI):
It is a statutory body constituted under the Competition Act,2002.
CCI was established in 2003, although it became fully functional only by 2009.
Chairperson– Ravneet Kaur
Headquarters– New Delhi, Delhi
