Cipla, PE firm Fidelity sign investment pact

Private equity firm Fidelity Growth Partners has signed an agreement with Cipla for investing in its consumer healthcare business, the drug maker has informed the stock exchange.

Cipla did not disclose the amount which will be invested by Fidelity Growth Partners in its consumer health subsidiary. The investment is subject to approvals from Foreign Investment Promotion Board and Competition Commission of India.

Cipla's board had given nod to the transaction in July and an investment agreement was signed on Friday. In July the board also proposed the divestment of consumer healthcare (OTC segment) business to a subsidiary.

In the last fiscal the segment contributed Rs 34.8 crore in revenue which was about 0.3 per cent of total consolidated income.