New Delhi: The Finance Ministry Thursday referred the foreign investment proposals worth Rs 4,187 crore in pharma firms - Glenmark and Aurobindo - to the Cabinet Committee on Economic Affairs.
The Foreign Investment Promotion Board has sent the proposal of Mumbai-based Glenmark Pharmaceuticals to the CCEA, headed by Prime Minister Narendra Modi, to raise the cap of foreign institutional investor holding to 49 percent from present 35.07 percent, an official statement said.
The move, if cleared would facilitate the drug firm to bring in Rs 2,022 crore of foreign funds into the country.
Besides, FIPB has also sent the proposal of Hyderabad- based Aurobindo Pharma for bringing in Rs 2,165 crore foreign investment by Qualified Institutional Buyers to the CCEA.
"The following two proposals have been recommended for consideration of the CCEA, as the investment involved in each of the proposal is above Rs 1,200 crore," the statement said.
Glenmark Pharma, which has significant presence in branded generics markets across emerging economies including India, employs over 10,400 people in over 80 countries.
Aurobindo Pharma has presence in key therapeutic segments such as neurosciences, cardiovascular, anti-retrovirals, anti-diabetics, gastroenterology and cephalosporins, among others.
Last month, the CCEA had allowed drug maker Lupin to raise the FII cap to 49 percent, a move that would facilitate an inflow of Rs 6,099 crore.
