Cadila gets nod for Rs 5,000-cr QIP

FIPB approves Rs 6,050-cr investment in pharma sector

Foreign Investment Promotion Board (FIPB) has given approval to Rs 6,050 crore worth investment in Cadila Healthcare and Nitin Lifesciences.

Cadila Healthcare can now raise up to Rs 5,000 crore of fresh equity from foreign investors through qualified institutional placement route. It proposes to use the funds for business expansion and acquisitions. FIPB has also granted approval to Swedish firm Recipharm’s acquisition of 74 per cent in injectable maker Nitin Lifesciences for Rs 672 crore. Recipharm has secured approval to invest Rs 1,050 crore in a wholly-owned subsidiary in India. The investment in Nitin Lifesciences will be carried out through the subsidiary. Cadila did not respond to an e-mail query.

In April, Cadila had secured shareholder approval for an enabling resolution to raise up to Rs 10,000 crore through debt or equity instruments such as bonds, debentures or share sale through QIP route. At that time, the company said it was looking at growth through both organic and inorganic manner.

Recently, Cadila acquired select brands and the Haridwar manufacturing unit of Zoetis, which was spun off Pfizer in 2013, for an undisclosed sum. The deal will help the company expand its animal health business in India and gain access to manufacturing operations. As a result of the acquisition, it would gain access to a wide range of nutrition as well as therapeutic products that have strong brand equity and a combined turnover of Rs 171 crore.