New Delhi: The government Wednesday allowed drug maker Lupin to raise the cap of foreign institutional investor holding to 49 percent, a move that would facilitate an inflow of Rs 6,099 crore.
The proposal was cleared in the meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.
"The Cabinet Committee on Economic Affairs today gave its approval to the proposal of M/s Lupin Limited for increase in aggregate limit of investment by FIIs and their sub-accounts registered with SEBI, from 33 percent to 49 percent," an official statement said.
"The approval would result in foreign investment of Rs 6,099 crore (approximately) in the country," it added.
Proposals worth over Rs 1,200 crore require CCEA nod.
Mumbai-based Lupin is a significant player in the various therapeutic segments including cardiovascular, diabetology, asthma, paediatric and anti-infectives.
It its fifth largest and fastest growing top 5 generics player in the US market and third largest Indian pharmaceutical company by sales.
For the financial year ended March 2014, Lupin's consolidated revenues and profit after tax were Rs 11,086.6 crore and Rs 1,836.4 crore respectively.