The Central government approved drug maker Cadila Healthcare's proposal to infuse Rs 5,000 crore based on recommendations by the Foreign Investment Promotion Board (FIPB). The company plans to issue fresh equity shares to foreign investors on a private placement basis to expand its business.
Recipharm Participation, a Swedish company, got the government's approval to set up a wholly-owned subsidiary in India that will invest Rs 1,050 crore in other companies.
"Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 229th meeting held on 21 December 2015, the Government approved five (05) proposals of Foreign Direct Investment (FDI) amounting to Rs. 6050.10 crore," an official statement said on Thursday.
Among the proposals deferred were that of micro-finance institution Equitas Holdings Private Limited to come out with an IPO comprising a fresh issue of shares and an offer for sale of equity shares by existing shareholders to foreign institutional investors and non-resident Indians.
Equitas Holdings has recently received Indian capital markets regulator Sebi's approval to raise Rs 2,000 crore, which includes a fresh issue of shares for Rs 600 crore.
Its existing investors comprising who are offering their shares for sale include the International Finance Corporation, Sequoia Capital, FMO, Helion Venture Partners, Aavishkaar, India Financial Inclusion Fund, Westbridge Ventures, Lumen Investment Holdings and Aquarius Investments, reported Mint.
These funds hold 67.53% stake in the company.
The company's founder PN Vasudevan is also selling a part of his holding in the company; he holds 3.17% stake in Equitas Holdings.
The company was one of the 10 applicants to get a licence by the Reserve Bank of India to start a small bank.
