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Our Bureau

New Delhi, Aug. 18 World Bank’s private sector lender International Finance Corp has sold its 7.75 per cent stake in Dabur Pharma Ltd to German pharma major Fresenius Kabi. International Finance Corp held 12.14 million shares in the company since 2005.

Speaking to Business Line Mr Sujoy Bose, IFC Senior Manager for South Asia, said the deal is part of the German company’s earlier announced decision to acquire a majority stake in Dabur Pharma.

Fresenius Kabi had bought a 17.6-per cent stake in Dabur Pharma through an open offer at Rs 76.50 a share.

This is in addition to the 73.3 per cent stake it bought in the Indian company from the Burman family at the same price in April.

Following the open offer, Fresenius Kabi owns a 90.9 per cent stake in Dabur Pharma and will need to bring down its holding to 89.9 per cent to comply with Indian laws that require a listed entity to keep 10 per cent of equity for the public. The German company said it plans to sell one per cent stake in Dabur Pharma Ltd to a strategic investor to comply with Indian listing rules.

Dabur Pharma’s share price closed 1.48 per cent up from Rs 68.70 at the Bombay Stock Exchange on Monday.

Fresenius Kabi is planning to invest up to 30 million euro in the next two-three years in the Indian company.

The investments will go primarily into doubling production capacity of Dabur Pharma’s active pharmaceutical ingredients manufacturing facility in Kolkata. Fresenius Kabi is also expanding Dabur Pharma’s global reach to regulated markets such as Europe and North America.

The company is working towards getting clearance from the US Food and Drug Administration for the Indian firm’s formulation facility in Baddi, Himachal Pradesh.

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