The decision was taken by Cabinet Committee on Economic Affairs (CCEA) at its meeting.
Earlier, the proposal of HIPL to receive FDI amounting to Rs 4,500 crore approximately in the investing company from Bain Capital and Lathe Investment Private Limited (LIPL) was cleared by Foreign Investment Promotion Board (FIPB) last month. Subsequently it forwarded to CCEA for final approval. The FIPB has the mandate to approve FDI proposal up to Rs 1,200 crore. FDI proposal exceeding this cap has to come before CCEA for final clearance.
Nod for Reckitt Benckiser
CCEA also approved the proposal of consumer goods major Reckitt Benckiser to bring in FDI to the tune of Rs 3,300 crore through a subsidiary to fund its acquisition of Ahmedabad-based Paras Pharmaceuticals Limited (PPL).
Through induction of FDI worth Rs 3300 crore, the UK-based Reckitt Benckiser proposes to set up a new wholly owned subsidiary investing company to make downstream investment in PPL by way of acquisition of 100 per cent equity. PPL is a leading pharma firm producing popular health and personal care products under the brands like Moov, D'Cold, Dermicool, Krack, Itch Guard and Ring Guard.
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