Glenmark, Aurobindo Pharma Gain on Approval of Foreign Investment Proposals

Shares in Glenmark Pharmaceuticals and Aurobindo Pharma jumped higher on Wednesday as the Cabinet Committee on Economic Affairs (CCEA) yesterday cleared the companies proposals of foreign investment.

Glenmark surged as much as 7 per cent to hit intraday high of Rs 901.35. The CCEA had yesterday cleared its proposal to increase foreign holding limit (FII limit) in the company to 49 per cent from 35.07 per cent now. The increase in FII limit is likely to attract foreign inflows worth Rs 2,022 crore.

Likewise, Aurobindo Pharma Shares also gained over 1.5 per cent. The committee also cleared the company's plans to infuse up to Rs 2,156 crore through Qualified Institutional Buyer (QIB), which is around 7 per cent of fresh equity. Foreign investors currently hold 27.32 per cent stake in the company.

Shares in Glenmark closed 4.22 per cent higher at Rs 879.8 apiece and Aurobindo Pharma shares ended at Rs 1,317.50 down 3.14 per cent on Wednesday.