India Finance Ministry kicks the can on Aurobindo, Glenmark foreign investment

SINGAPORE--India's Finance Ministry kicked the can down the road for another agency to determine whether $67 million worth of foreign direct investment should be opened for Aurobindo Pharma and Glenmark Pharmaceuticals.

Based on recommendations by its foreign Investment Promotion Board, the ministry referred the applications of the two generics makers to the Cabinet Committee on Economic Affairs.

Aurobindo had applied for permission to allow about $34 million in investments by qualified institutional buyers in other nations. Glenmark asked to have the 35.07% limit on its FDI lifted to the maximum 49% allowed by Indian law in existing businesses. Getting to the maximum would allow about $33 million in additional FDI, the company said.

In the same meeting dominated by drugmaker filings, several on technical issues, the ministry also deferred 8 other pharma investment proposals, rejected one and approved two, by SeQuent Scientific for raising money and Laurus Labs for an employee stock ownership plan.

- here's the Finance Ministry release
- here's a Livemint story