Sunrise Gets Fipb Okay To Up Equity

Sunrise Worldwide has received the Foreign Investment Promotion Board (FIPB) permission to revise equity structure. As a result the paid-up equity of the company will go up from Rs 25.5 lakh to Rs 1.20 crore. The foreign equity component will increase from 58.82 per cent (Rs 15 lakh) to 91.29 per cent (Rs 1.10 crore).

Sunrise Worldwide had earlier been granted foreign collaboration approval for computer software development management services with foreign equity of 58.82 per cent amounting to Rs 15 lakh and NRI equity of 37.84 % amounting to Rs 9.6 lakh.

In the enhanced paid up capital, the US-based Sunrise Logistics Inc will invest Rs 25 lakh, Sunrise Logistics of Hong Kong will put in Rs 45 lakh, and Software Holdings Inc of the US will pitch in with Rs 40 lakh.

 

The NRI equity will remain unchanged in absolute terms at Rs 9.6 lakh. As a result, in percentage terms, this component will come down from 37.84 per cent to 8.01 per cent.

The company had stated in its application that it had received an offer from its collaborator to inject Rs 95 lakh in its share capital. The availability of additional funds will enable the company to develop its software centre and expand its activities. The department of electronics had supported the proposal. FIPB has also cleared the Solarnet India proposal for bringing in foreign investment to provide a software network service for the hotel and tourism industry that would provide the latest information about reservation position, fares, availability in hotels, airlines, tour packages and car rentals. The software will be available on-line via VSNL.

However, FIPB has put a cap of 49 per cent on the foreign equity component, rejecting the company's proposal of 51 per cent foreign equity based on the department of telecommunications stand that the activity would partly attract the equity cap norms for Internet services.

The proposal also involves payment of a lumpsum fee of Canadian $100,000, net of taxes, to be paid in a single installment as marketing/licence fee.