The deal involves Mauritius-based Bluewater Investment Ltd, an investment holding company belonging to Warburg Pincus, acquiring 32.29 per cent stake in Laurus.
The purchase would be done by subscribing to compulsorily convertible preference shares of Laurus as well as acquisition of fully paid up equity shares/preference shares from certain existing shareholders.
Approving the deal, the fair trade watchdog said the proposed combination is not likely to have an appreciable adverse effect on competition in India.
"Therefore, the proposed combination is not likely to raise any competition concern in India," Competition Commission of India (CCI) said in its order dated July 3 and made public today.
The notice seeking CCI approval was submitted by Bluewater on May 30.
Over 90 per cent of Laurus's turnover comes from the sale of APIs.