Shares of Aurobindo Pharma gained 1.7 percent intraday Wednesday after the cabinet committee on economic affairs (CCEA) approved foreign investments by qualified institutional buyers in company. The stock touched a record high of Rs 1,382.25 but after half an hour of early trade, the stock saw some profit booking.
The decision was taken by the CCEA, chaired by Prime Minister Narendra Modi. In February, the Foreign Investment Promotion Board had referred the proposal by the domestic pharma company to the CCEA for clearance on exceeding clearance limit of Rs 1,200 crore by the company.
The Hyderabad-based pharma company proposed to bring in Rs 2,165 crore worth foreign investments by qualified institutional buyers.
Aurobindo Pharma is engaged in manufacturing generic pharmaceuticals, active pharma ingredients and approvals have been given for qualified institutional buyers to infuse fresh equity of "up to 7 percent amounting to about Rs 2,165 crore into the company", an official statement said.
The existing FII shareholding is 27.32 percent in the company, it said, adding that "this will enable the company to expand its operations in the areas of anti infective, cardiovascular and central nervous system related ingredients. Aurobindo Pharma employs more than 9,500 professionals from 26 countries".
"These investments show the continued confidence of international investors in the domestic Intellectual Property Regime in the pharmaceutical sector," it added.
At 09:51 hours IST, the scrip of Aurobindo Pharma was quoting at Rs 1,361, up Rs 2.20, or 0.16 percent on the BSE.
(With inputs from PTI)
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