Fresenius Kabi hits 52-week high on FIPB nod, gains 9%

Moneycontrol Bureau

Shares of Fresenius Kabi Oncology surged 8.9 percent in early trade Tuesday to touch a fresh 52-week high of Rs 154.20 as the Foreign Investment Promotion Board (FIPB) cleared six proposals envisaging investments of Rs 855 crore in the pharmaceutical sector, including Fresenius Kabi. The FIPB, chaired by Department of Economic Affairs Secretary Arvind Mayaram, approved the proposal of Singapore-based healthcare firm Fresenius Kabi to bring in FDI worth Rs 349 crore, according to PTI quoting unnamed sources. The company proposes to acquire the public shareholding of its Indian subsidiary, Fresenius Kabi Oncology Ltd, through a voluntary delisting offer. Currently, India allows 100 per cent FDI in the pharma sector through the automatic route for new projects, while foreign investment in existing drug companies has to be approved by the FIPB. Fresenius Kabi (Singapore) Pte Ltd holds 81 percent stake in the company as of June 2013. At 10:18 hours IST, the stock was quoting at Rs 147, up 3.81 percent on the BSE.