India's overseas investment in May down 39 pc year on year

Tags: News
Overseas direct investment by Indian companies stood at $ 1.59 billion in May 2014, down 39.3 per cent from a year ago.

The overseas foreign direct investment (FDI) by companies was at $ 2.62 billion in May 2013. The Indian companies had made financial commitment to the tune of $ 5.58 billion in April 2014.

The overseas FDI during May 2014 consisted of $ 155.69 million from equity, $ 182.59 million from loan and $ 1.26 billion were through issuance of guarantees, the RBI data on 'Outward FDI from India' showed today.

"There are primarily twin reasons for the same. Firstly, the financial stress the Indian companies are going through over the last year on the backdrop of political uncertainly, slowing down economy and policy bottlenecks.

"The mood was of caution and fear and hence the investments were lower. Secondly the weakening of the Indian rupee also played a vital role making the overseas acquisitions expensive," said Girish Vanvari, Co-Head of Tax, KPMG India.

Maharashtra Seamless, Emcure Pharmaceuticals, Graphite India, Inox India, Scrabble Entertainment, Welspun Corp Ltd and Simplex Infrastructure were among the major investors overseas in May 2014.

Pipes and tubes manufacturer Maharashtra Seamless invested $ 54.86 million in its joint venture in UAE and Graphite India made an investment of $ 31.40 million in a wholly owned subsidiary in the Netherlands.

Emcure Pharmaceuticals made a total investment of $ 29.21 million in two separate tranches in its wholly owned units in the UK and the US.

Cryogenic engineering company Inox India had commitment of $ 26.02 million in its joint venture in the US, while Scrabble Entertainment made an investment of $ 25 million in two separate deals in its joint venture and a wholly owned unit in the UAE and the US respectively.

Simplex Infrastructures had commitment of $ 18.7 million in a joint venture in Oman and Welspun invested $ 16.84 million in its joint venture in Mauritius.

Other major investors included Gitanjali Gems ($ 15.5 million), Glenmark Pharmaceuticals ($ 15.58 million), IL&FS Transportation Networks ($ 11.75 million), and Oil India Ltd ($ 9.55 million).

EDITORIAL OF THE DAY

  • Sebi’s guidelines for commodity bourses will help farmers get fair price

    As the timeline for the proposed merger of the Forward Market Commission (FMC) with the Securities and Exchange Board of India (Sebi) comes closer, th

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

M S Swaminathan

State must intervene to end farm distress

The persistence of farmers’ suicides inspite of the several programmes ...

Zehra Naqvi

Why lie, not like, drives Facebook

So much has been written about how social media and ...

Gautam Gupta

It's a 'blog eat blog' world out there

Let me tell you, fashion journalism has truly taken the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture