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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.
Government sources said that since Tikona had five foreign investors in the company it had to take FIPB approval for making HCL Infinet its subsidiary.
The five investors include Goldman Sachs Investment Partners, Oak India Investments, Green Lotus Ltd 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. HCL Infinet, on the other hand, is an Indian company and wholly owned by HCL Infosystems.
The proposal to acquire HCL Infinet has been circulated among various Ministries for comments. Sources said that the Department of Industrial Policy & Promotion has given an in-principle approval to the deal as long as the FDI norms governing the telecom sector are not breached.
Tikona has an Internet services provider licence and currently offers broadband services using unlicensed spectrum.
HCL Infinet has licences for national long distance telephony, call centre and Internet services.
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