The Hindu Business Line: February 08, 2013
Mumbai: Overseas direct investment by India Inc soared by 179 per cent in the month of January to $3.303 billion against $1.184 billion in the year-ago period.
This investment comes even as Indian companies are holding back investments in the country due to adverse demand conditions, both in the domestic and overseas markets.
Overseas investment by Indian companies is in the form of equity, debt, and guarantees issued.
Among the big overseas investments made by Indian companies in January 2013 include: Bharat Petroresources Ltd ($439 million), Cox & Kings India ($249 million), Essar Steel ($155 million), Tata International ($128 million), and Videocon Oil Ventures ($127 million).
Downturn in overseas markets may be prompting Indian companies to pick up overseas assets at a relatively cheaper valuation, said a banker.
Indian companies' overseas investment in the first 10 months of the current financial year have been about $3 billion lower, aggregating $23.325 billion ($26.468 billion).
The peak overseas investment in the current financial year was in the month of June when Indian corporates made investments aggregating $3.532 billion.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.