Cabinet nod to Rs 9,589-cr FDI in Suven Pharma

PTI

New Delhi, September 13

The government on Wednesday approved an FDI of up to Rs 9,589 crore in Suven Pharmaceuticals by Cyprus-based Berhyanda Ltd to fund capacity expansion of the Indian pharma company and also generate new jobs.

To fund capacity expansion

• The approval is for acquisition of up to 76.1% equity shares of Suven Pharmaceuticals Limited...by Berhyanda Limited, Cyprus
• The aggregate foreign investment may increase up to 90.1 per cent in Suven following infusion of the foreign capital

The proposal has been evaluated by SEBI, RBI, CCI and other relevant agencies, said an official release after the meeting of the Cabinet Committee on Economic Affairs (CCEA).

The approval has been granted after examination of the proposal by departments concerned, RBI and SEBI and is subject to the fulfilment of all rules and regulations as applicable in this regard, it added.

“The approval is for acquisition of up to 76.1% equity shares of Suven Pharmaceuticals Limited...by Berhyanda Limited, Cyprus, by way of transfer of shares from existing promoter shareholders and public shareholders through mandatory open offer,” the release said. The aggregate foreign investment may increase up to 90.1 per cent in Suven following infusion of the foreign capital.

Suven is listed on BSE and NSE. The company’s shares closed at Rs 517.40 apiece on BSE, up 0.75 per cent.

According to the statement, entire investments in Berhyanda Ltd are held by Advent Funds, which pool investments from various Limited Partners (LPs).

Advent Funds are managed by Advent International Corporation, an entity incorporated in the US. Advent International Corporation, set up in 1984 has made investments of about $75 billion in 42 countries.

Advent India started investments in India in 2007, and so far has invested about Rs 34,000 crore in 20 Indian companies across healthcare, financial services, industrial manufacturing, consumer goods and IT services sectors.