Economy

Govt approves three pharma FDI proposals worth Rs 60.73 crore

Our Bureau New Delhi | Updated on January 20, 2018 Published on May 18, 2016

Axis Bank's proposal worth Rs 12,973 crore referred to CCEA as per norms

The Government has approved three foreign direct investment proposals, all related to the pharmaceutical sector, worth Rs 60.73 crore.

Axis Bank’s FDI proposal worth Rs 12,973.14 crore to increase foreign investment by FIIs / NRIs/ FPIs / ADRs / GDRs from 62 per cent to 74 per cent has been referred to the Cabinet Committee on Economic Affairs (CCEA). This is in line with the government's decision to refer all FDI proposals above Rs 5,000 crore to the CCEA.

Eight proposals including those from Macmillan Publishers, UK, JCB International, Janalakshmi Financial Services and Fans Asia have been deferred, while a proposal by Rafique Dawood in the manufacturing sector has been rejected, an official release circulated on Wednesday stated.

The decisions have been taken based on the recommendations made by the FIPB at its meeting of April 29.

The highest FDI proposal of the three pharmaceutical companies which got the nod was from Advanced Enzyme Technologies. The company sought approval for investment proposed to be made by FIIs / NRIs / FPIs / QFIs / AIF/FVCIs pursuant to fresh issue of and offer for sale of 44,73,470 equity shares by certain NRIs and resident shareholders worth Rs 60 crore.

The other two companies whose proposals were approved include Wockhardt, which asked for post facto approval for issuance of ESOPs to its two NRI employees, and Aurobindo Pharma which sought clarification and approval regarding grant of ESOPs to a non-resident employee.

Published on May 18, 2016
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