Press Information Bureau

Government of India

Ministry of Finance

 

29-March-2011 12:41 IST

Proposal of M/s. Reckitt Benckiser Plc. UK to set up a new wholly owned Subsidiary investing company to make downstream investment in M/s. Paras Pharmaceuticals Limited by way of acquisition of 100 per cent equity approved

The Cabinet Committee on Economic Affairs today approved the proposal of M/s. Reckitt Benckiser Plc. UK to set up a new wholly owned Subsidiary investing company with a foreign equity of 100% subscribed by Ms. Reckitt Benckiser (Singapore) Pte. Limited, Singapore (entire equity except 10 shares) and M/s R&C Nominees Limited (10 shares) to make downstream investment in M/s. Paras Pharmaceuticals Limited by way of acquisition of 100 per cent equity.

The approval is expected to result in FDI amounting to Rs. 3300 crore approximately in the Wholly owned Subsidiary of M/s. Reckitt Benckiser Plc. UK.

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SH/SK/SM

Foreign direct investment approval enables wholly owned subsidiary to acquire entire equity in target company. Approval authorised formation of a wholly owned subsidiary with 100% foreign equity subscribed by Reckitt Benckiser (Singapore) Pte. Limited and a nominee (ten shares) to make a downstream investment by acquiring 100% equity in M/s. Paras Pharmaceuticals Limited, effectuating foreign direct investment into the subsidiary via the downstream acquisition route.