Sun Pharmaceutical Industries, one of India's leading pharmaceutical companies, is now set to acquire its Israeli unit Taro Pharma following an approval from the board of Taro Pharma.

Sun Pharmaceutical increased its bid to acquire the company by 60 per cent to get the Taro Pharma's board to approve the takeover. Under the new offer, Sun Pharmaceutical will pay $ 571 million to acquire one third of Taro Pharma 's 44.5 million shares at $39.50 a share.

Taro Pharma's board had scrapped an earlier bid by Sun Pharmaceutical that priced each share at $24.50. Sun Pharmaceutical, which is based in Mumbai, has said that it is planning to delist Taro Pharma from the New York Stock Exchange after it completes the acquisition.

The Israeli firm said in a statement that its board has accepted the revised offer from Sun pharmaceutical. Sun Pharmaceutical and its affiliates already own 66 per cent of Taro's ordinary shares and 100 percent of the shares of Taro's founders. This accounts for about 77.5 per cent of the voting power in the company.

The shares of 0.8 per cent to Rs 680.8 in the domestic stock exchange while Taro closed at $41.10 Friday on the New York Stock Exchange.