Glenmark Pharmaceutical Ltd shares gained 5.1 per cent in morning trade on the BSE.
A government panel approved the company's plan to increase the foreign investment limit by institutional investors to 49 per cent from 35.07 per cent.
This will result in an inflow of about Rs 2,022 crore in the company, the government release added.
Separately, Glenmark said US unit will pay $1.56 million/qtr for the next 16 quarters to Texas state for settlement of a pricing investigation.
At 10.04 am, the Glenmark stock was up 5.10 per cent or Rs 43.10 at Rs 887.50.