Oracle informed the Bombay Stock Exchange (BSE) in Mumbai on Wednesday of its intention. The database giant has offered to buy 16.63 million equity shares in I-Flex for Indian Rupees 1,475.00 (US$32/£17) per share. The deal will total about $531 million (£283.7m) if I-Flex shareholders accept the offer, which opens 6 November and closes 25 November.

The vendor already holds a majority stake in Mumbai-based I-Flex, but announced last month it would invest $125 million (£66.8m) in I-Flex to increase its stake from 52.5% to 55.1%. The investment will help I-Flex fund its $122.6 million cash acquisition of anti-money laundering and compliance software and services vendor Mantas, I-Flex said.

Oracle had also said in August that it intended to increase its stake in I-Flex to meet Indian regulations regarding the acquisition of shares and takeovers.

A number of multinational companies that have bought stakes in Indian companies, have then bought out joint venture partners or minority shareholders.

In 2003, HP bought out the public share holding in Digital GlobalSoft, a software development and services subsidiary in Bangalore in which it had a majority holding. HP said at the time that it did not want a listed subsidiary in India because then it would be accountable to two sets of shareholders – HP’s and Digital GlobalSoft's.

IBM also bought out its joint venture partner, the Tata Group, to run its Indian operation as a wholly owned subsidiary. Oracle has, however, stated that it would like to retain the independence of the management and operations of I-Flex.