It has also sought permission to issue the shares at Rs 10 per share instead of Rs 26 earlier arrived at.
New Delhi, Sept. 22
McGraw-Hill Companies will pick up a strategic 15 per cent stake in the Mumbai-based information technology and publishing company Hurix Systems Private Ltd (HSPL).
The company has sought permission from the Foreign Investment Promotion Board (FIPB) to issue around 6 lakh shares comprising around 15 per cent of the equity capital of the company to McGraw-Hill.
The equity participation by the $6-billion McGraw-Hill group would boost the market potential of the company that is planning to come out with an initial public offering in the near future, sources said.
According to informed sources, this would be McGraw-Hills first listed entity in India and 15 per cent stake would entitle board positions for the US-based company.
McGraw-Hill has an annual revenue of around $6 billion and operates in the area of financial services, education and media. The group owns Standard & Poor's,
Business Week, JD Power & Associates, Platts,
Aviation Weekand several television stations.
To boost the revenues of the new joint venture company, McGraw-Hill has also committed $8 million per year revenue for the next five years for providing software services to McGraw-Hill Companies, sources said. It has also sought permission to issue the shares at par value of Rs 10 per share instead of issuing them at Rs 26 per share as arrived at as per the erstwhile Controller of Capital Issues guidelines.