Japanese drug maker Daiichi Sankyo on Monday received approvals from the market regulator SEBI and Foreign Investment Promotion Board for the acquisition of 34.8 per cent stake in the Indian drug major Ranbaxy.

According to industry sources, the Japanese firm has got the necessary approvals from concerned authorities to acquire 20 per cent stake through open offer as well as the clearances for share purchase agreement signed between the two firms for the 34.8 per cent stake.

However, when contacted Ranbaxy officials declined to comment on the development.

Earlier on June 16, the Japanese firm, which had agreed to acquire the promoters' 34.8 per cent stake in Ranbaxy, had made an open offer for acquiring up to 9.21 crore shares, representing 20 per cent stake in Ranbaxy at a price of Rs 737 each. Daiichi Sankyo had announced the acquisition of a majority stake of more than 50 per cent in the domestic pharma major Ranbaxy for over Rs 15,000 crore. The acquisition is expected to complete by March 2009.

Daiichi's proposed open offer price at Rs 737 per share represents a premium of 53.5 per cent to Ranbaxy's average daily closing price on the National Stock Exchange for three- month ended June 10, 2008, the Japanese firm had earlier said in a statement.

Besides the promoters' stake, Daiichi would also get about 9 per cent through issue of preferential allotment of shares and some warrants, which could be later converted into another 4.5 per cent holding. These, along with a minimum 8 per cent that the new promoters wish to acquire through the open offer, would take Daiichi's holding to above 50 per cent.

As per the agreement, there would be 10 members on the board, of which Ranbaxy would appoint four members, including Malvinder Singh, who would remain the company's CEO and MD, while the rest of the members would be from Daiichi Sankyo.

Singh had earlier said the company would continue to be listed in India.