FIPB clears Cadila Healthcare, 8 other proposals

Inter-ministerial body FIPB today cleared nine proposals including that of Cadila Healthcare and Volvo Asset Finance India.
Barring Cadila Healthcare, other eight proposals cleared by the Foreign Investment Promotion Board (FIPB) will result in inflow of about Rs 1,200 crore into the country, official sources said.
Cadila Healthcare was reconsidered by the FIPB following the changes made by the government in foreign direct investment (FDI) policy last month.
As per the earlier norms, Cadila proposal was cleared and recommended to seek Cabinet Committee on Economic Affairs (CCEA) nod as the investment proposals was over Rs 3,000 crore.
However, as per the revised norms, the FIPB could give clearance to FDI proposals up to worth Rs 5,000 crore.

Therefore, the Cadila Healthcare proposal again came up for consideration before the FIPB, sources added.

The FIPB, which is headed by Economic Affairs Secretary Shaktikanta Das, deferred few proposals including Holcim (India) Pvt Ltd, HSBC Securities and Capital Markets and Raheja QBE General Insurance.
(REOPENS DCM26)
Nippon Life Insurance has already secured approval from Competition Commission of India (CCI) and the transaction is expected to be completed in the next few days, the firm said.
Post the stake hike, the name of the company will be changed to Reliance Nippon Life Insurance.
"The transaction pegs Reliance Life Insurance's valuation at about Rs 10,000 crore, amongst the highest valuation for any Life Insurance company in the country. Nippon Life Insurance investment in Reliance Life Insurance represents implied embedded value multiple of over three times, the highest in the industry till date," it said.