Piramal Healthcare Ltd said following the sale of its domestic formulations business it received Rs10,271 crore as initial payment from to US-based Abbott Healthcare Ltd.
Piramal had entered a definitive agreement with Abbott in May this year for sale of its domestic formulations business, including its branded formulations business and its manufacturing facility at Baddi, for about Rs18,000 crore.
According to the agreement Abbott had agreed to pay $2.12 billion upfront and the remaining amount in four annual installment of $400 million.
As part of the agreement, Piramal will not engage in generic pharmaceutical business in the country for the next eight years. The completion of the deal would also lead to transfer of more than 5,000 employees of the domestic formulation business to Abbott.
On Thursday, Piramal Healthcare shares gained 1% to Rs526 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.7% up at 18,799 points.
Lanco Infratech Ltd said its 1,320 MW (2x660) thermal power project being developed by its unit Lanco Babandh Power Ltd in Orissa, has achieved financial closure.
The project, estimated to cost Rs6,930 crore, would be financed with a debt of Rs5,544 crore and an equity of Rs1,386 crore. A consortium of fourteen banks and financial institutions with ICICI Bank in the lead are providing the debt required for the project.
On Thursday, Lanco Infratech shares ended 1.2% up at Rs70 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.7% up at 18,799 points.
New Delhi: The Insurance Regulatory and Development Authority (IRDA) today said that by end-September it will finalise the initial public offer (IPO) guidelines for non-life insurance companies that will allow them to raise funds from the capital market, reports PTI.
"As regards the IPO of non-life companies there are certain aspects which we have to finalise in IRDA. Hopefully, we will finalise those issues in next three weeks," IRDA chairman J Hari Narayan said on the sidelines of a Confederation of Indian Industry (CII) Health Insurance Summit here.
Mr Hari Narayan said the proposed IPO guidelines for non-life insurance firms were in the process of finalisation before they were sent to SCADA, a body constituted by the Securities and Exchange Board of India (SEBI), for approval followed by a final approval from the market regulator.
"We hope to finalise the guidelines in three weeks and sent it to SCADA (a SEBI body)," he said.
As for the life industry IPO guidelines, he said, the matter was at very advanced stage, awaiting SEBI approval.
"SCADA has already approved the IPO guidelines for life insurance companies. The matter is currently engaging the attention of SEBI," Mr Hari Narayan said.
Currently, most of the 22 private life insurers and 17 non-life players have foreign partners and the Insurance Act caps foreign direct investment at 26%.
As per the Insurance Act, promoters having 26% stake can offload equity after 10 years of operation. The legislation also empowers the government to reduce the mandatory period.
IRDA had already notified the disclosure norms, necessary for providing details about the operations and balance sheets on quarterly and yearly basis. The IPO guidelines will deal with minimum norms that a company must fulfil before hitting the capital markets.
The general insurance sector has 21 players, which include four state-owned companies.
Several private sector insurers, including Reliance Life and HDFC Standard Life, have shown interest in tapping the capital market to augment their resource base.
The private players are waiting to tap the primary markets to augment their resource base, as all of them are yet to break even.