The Foreign Investment Promotion Board has cleared the proposal of D-Link Holding Mauritus Inc, Taiwan, to hike its stake in D-Link (India) from 34.51 per cent to 40.00 per cent.
D-Link (India) director (finance) C M Gaonkar said: "The FIPB has approved D-Link Holding Mauritus proposal to buy 103.561 lakh shares of Rs 2 each from the open market or through a private placement."
D-Link, an IT hardware manufacturer and promoted by K R Naik, has financial participation from D-Link Corporation, Taiwan. Recently, D-Link Holding Mauritius, the holding company had recently hiked its stake in the company from 35.14 per cent to 35.65 per cent.
K R Naik, chairman and managing director, holds 26 per cent stake in the company.
Meanwhile, foreign institutional investors have increased their holding in the company to 14.64 per cent by the end of fiscal March 31, 2004 from 8.67 per cent in the previous year.
Several foreign funds have also picked up holdings in the company. Citigroup Global Market Mauritius holds 3.53 per cent, while GMO Emerging Markets Fund holds 2.33 per cent.
Lloyd George Investment, Matterhorn Ventures, Taib Securities, Mauritius are also among foreign funds to have picked up a stake in the company. Domestic mutual funds including HDFC Mutual Fund and Tata Mutual Fund have also picked up a stake in the company last fiscal ended March 2004.
K R Naik said, "Cashing in on the growing need of automated teller machines in India, we have entered into a joint venture with Taiwan-based Mercuries Data Systems to manufacture and sell a range of ATMs in India."
Under the agreement, Lanner Electronic India, a subsidiary of D-link India, the companies will make and distribute ATM machines from D-Link's facility in Goa. D-Link (India) has acquired two adjacent plots in Goa's Verna Electronic City.
The company plans to invest an additional Rs 5 crore (Rs 50 million) in the Goa facility. "India is the fastest growing ATM market in the world and is only second to China, which has prompted us to set a manufacturing base here," K R Naik added.
The joint venture partners expect to sell around 1,000 ATMs per year and garner over 15-25 per cent market share within the next one to two years of operations.