January 2016, Economy
In January 2016, the Government approved five foreign investment proposals, involving an inflow of Rs. 6,050 crores including a Rs. 5,000-crore plan of Cadila Healthcare for fresh equity infusion.
Cadila will infuse equity of up to Rs. 5,000 crore through issue of shares to QIBs through Qualified Institutional Placement for expansion.
The other major proposal approved was of Recipharm Participation BV for incorporating a wholly-owned subsidiary (WoS) in India. The pharma firm’s proposal worth Rs. 1,050 crore also included the WoS buying out promoter stake in Nitin Life sciences and increasing foreign equity to 74 per cent.
Also approved was Buimerc Core Investments Pvt Ltd’s proposal for transferring of 100 per cent equity shares of NRI investors and Resident Investors to Buimerc Corporation FZE.
The proposal involves Rs. 10 lakh of foreign direct investment.
The government also approved Health Media Publishing Pvt Ltd’s proposal to transfer its 99.90 per cent shares by NRI Ajit Patel to Wellness Technology and Media Ptv Ltd, UK.
The FIPB, chaired by Economic Affairs Secretary Shaktikanta Das, however deferred six FDI proposals.
The FIPB also rejected two proposals — Nigeria’s Mokeme Chiwetal Izuchukwu and Lanarth Developers Pvt Ltd.