The cabinet committee on economic affairs (CCEA) approved KKR Floorline Investments PTE's purchase of a 37.98% stake in Gland Pharma through primary investment into the company and also a share purchase from an existing investor, EILSF.
The CCEA also allowed KKR to acquire a 24.9% stake in Gland Celsus Bio Chemicals.
KKR, Gland Pharma and Gland Celsus had entered into the share purchase pacts in November last year. Earlier in January, the Competition Commission of India had approved such deals.
The CCEA also ratified the stake sale in power equipment maker BHEL through the block deal route, said the sources.
In March, the finance ministry had effected the sale of the 4.66% stake in Bhel to Life Insurance Corporation (LIC) for Rs 1,889 crore. LIC had picked up 11.41 crore shares in the state-run power equipment maker at a price of Rs 165.55 each through a block deal on the Bombay Stock Exchange. After the sale, the government stake in Bhel has dropped to 63.06%.
In February, an empowered group of ministers, led by finance minister P Chidambaram, decided on the timing and the mode of disinvestment in Bhel, although the CCEA clearance was pending.
The CCEA had first cleared a proposal to divest 5% in Bhel through a follow-on public offer in August 2011, although the company had to withdraw the draft prospectus filed with Sebi in April 2012 due to gloomy market conditions.
The government had in May 2005 decided to disinvest 10% equity of Bhel, out of its holding, through a book building process.