Shares of Strides Arcolab today surged over 7 per cent as the US-based Mylan Inc's Rs 5,168 crore proposal to acquire Agila Specialties Pvt Ltd was cleared by the Foreign Investment Promotion Board.
Strides Arcolab scrip gained 7.2 per cent to Rs 890 on the BSE.
On the NSE, the stock soared 7 per cent to Rs 889.80.
Mylan Inc's Rs 5,168 crore proposal to acquire Agila Specialties Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab -- was cleared by the Foreign Investment Promotion Board (FIPB) yesterday.
Since Mylan's investment proposal is of over Rs 1,200 crore, it will go to the Cabinet Committee on Economic Affairs for final approval.
According to a 'Share Purchase Agreement', Mylan would acquire entire issued and outstanding share capital of Agila Specialities Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab.
Mylan had moved the FIPB to seek approval for the acquisition.
Agila -- a developer, manufacturer and marketer of high- quality generically injectable products -- would be acquired by Mylan directly or through one of its subsidiaries.