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The Foreign Investment Promotion Board (FIPB) has cleared the UK-based pharma major Glaxo SmithKline’s (GSK) proposal to invest Rs 6,300 crore in its Indian arm to raise its stake by 24.33 per cent in the company.
FDI proposals by Singapore’s Hospira to pump in Rs 1,039 crore in its Indian arm and Japanese company Hitachi’s FDI proposal of Rs 1,540 crore also got the green signal.
Pharma major Lupin’s FDI proposal, however, was not cleared by the FIPB headed by Department of Economic Affaris (DEA) Secretary Arvind Mayaram at its meeting on Monday.
The Singapore subsidiary of GSK proposes to buy 24.33 per cent stake or 20.6 million equity shares in GSK Pharma Ltd through an open offer.
Despite objections voiced by the Department of Industrial Policy & Promotion (DIPP) over indiscriminate inflow of FDI in existing pharmaceutical projects, foreign investments in the sector during the April-October period totalled Rs 5,956 crore ($1.08 billion).
GSK’s FDI induction would be the largest in the pharma sector in the country so far.
In September 2013, US-based Mylan got the nod for acquiring Bangalore-based pharma firm Agila Specialties, a subsidiary of Strides Arcolab, for Rs 5,168 crore.
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