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FIPB refers Gland Pharma FDI proposal to CCEA for approval

LiveMint logoLiveMint 24-04-2017 PTI

New Delhi: The inter-ministerial body foreign investment promotion board (FIPB) has recommended the Rs4,315-crore foreign investment proposal of Gland Pharma Limited to the cabinet committee on economic affairs (CCEA) for approval.

The FIPB has deferred a decision on FDI proposals of Vodafone Mobile Services, the finance ministry said in a statement. The FIPB approved six FDI proposals involving inflows of Rs84.69 crore and rejected five proposals. Gland Pharma Limited, a brownfield pharmaceutical Indian company, is seeking approval for its initial acquisition of up to 86.08% by Shanghai Fosun Pharmaceutical (Group) Company Limited, a publicly-listed company incorporated in China, the ministry said in a release.

The Chinese firm seeks to acquire stake in Gland Pharma through its subsidiaries outside India, namely Fosun Pharma Industrial Ltd, Fosun Industrial Co. Limited, Ample Up Limited, Lustrous Star Limited and Regal Gesture Limited. “Subsequently, Fosun also has the contractual right to acquire 100% shares of Gland Pharma from other shareholders of the company in one or more tranches,” it added.

The proposal of Gland Pharma has been recommended for approval of the CCEA, the ministry said. The proposal entails FDI worth Rs4,315 crore. The proposals approved by the FIPB include a Rs65-crore PMC Group International’s proposal and Crown Cement Manufacturing India Pvt Ltd’s for Rs15.51 crore investment. The release further said Vodafone Mobile Services Ltd,a 100% foreign-owned Indian company, has sought post- facto approval for the scheme of amalgamation among Vodafone Mobile Services Limited, Vodafone Digilink Limited, Vodafone South Limited, Vodafone East Limited and Vodafone Cellular Limited.

However, the board, headed by economic affairs secretary Shaktikanta Das, deferred decision on the application. The other proposals on which decision was deferred include investment proposals of Sistema Shyam TeleServices Limited, Datawind Innovations Private Limited, HSBC Securities and Capital Markets (India) Private Limited and G4S Secure Solutions (India) Private Limited. Investment applications of PERI India Pvt Ltd, Limpkin Telecom Private Limited, LS Cable India Private Limited, Maxaim Network Private Limited, and Xerox India Limited have been rejected, the release said.

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