Blitz Bureau
NEW DELHI: Foxconn Singapore — a subsidiary of Taiwan’s Hon Hai Technology Group — has approved an investment of $37.2 million in its India-based subsidiary, Foxconn Hon Hai Technology India Mega Development Private Limited, as part of its long-term investment strategy, according to the company’s regulatory filing.
The company’s board of directors approved the investment through the subscription of approximately 351.73 million common shares of the Indian subsidiary at a face value of Rs 10 per share, it said.
The total transaction value amounts to about $37.2 million.
The filing said the investment is being made through a capital increase in the wholly owned subsidiary and is intended as a long-term investment.
However, the source of funds for the transaction is private capital. Following the share subscription, Foxconn Singapore will continue to hold virtually the entire equity in Foxconn Hon Hai Technology India Mega Development Private Limited, amounting to more than 23.18 billion shares with a cumulative investment of about $2.82 billion.
The remaining 10 shares are held by Yuzhan Technology (India) Private Limited, another group entity.
The company said the transaction does not involve any change in its business model.
It also said no broker was involved in the transaction and there were no dissenting opinions from the directors.
Moreover, the investment represents 3.55 per cent of the group’s total assets and 7.72 per cent of equity attributable to shareholders, based on its latest financial statements.
