New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved foreign direct investment (FDI) of upto Rs 9,589 crore in Suven Pharmaceuticals Ltd by Cyprus-based Berhyanda Ltd.
The approval is for acquisition of up to 76.1% equity shares of Suven Pharmaceuticals by Berhyanda by way of transfer of shares from existing promoter shareholders and public shareholders through mandatory open offer.
The aggregate foreign investment may increase up to 90.1% in Suven Pharmaceuticals.
“The proposal has been evaluated by SEBI, RBI, CCI and other relevant agencies. The approval has been granted after examination of the proposal by Departments concerned, RBI and SEBI and is subject to the fulfillment of all rules and regulations as applicable in this regard,” said an official release after CCEA meeting.
As per the release, the entire investments in foreign investor company Berhyanda are held by Advent Funds, which pool investments from various Limited Partners (LPs). The Advent Funds are managed by Advent International Corporation, an entity incorporated in USA.
Advent International Corporation, set up in 1984 has made investments of about US$ 75 billion in 42 countries. Advent India started investments in India since 2007 and so far it has invested about Rs 34,000 crores in 20 Indian companies across healthcare, financial services, industrial manufacturing, consumer goods and IT services sectors.
“The approved investment aims to generate new jobs, capacity expansion of the Indian company through investments in plant & equipment. Association with Advent Group is expected to provide larger platform to M/s Suven Pharmaceuticals Limited by expanding business operations; achieving operational excellence; enhancing productivity and accelerate growth; improve the environment, health and safety standards of Indian Company; and bring in global best practices in management as well as excellent training opportunities to existing professionals,” the official release said.
The present FDI policy allows 100% foreign investment under automatic route in greenfield pharmaceutical projects. In brownfield pharmaceutical projects, FDI upto 74% are allowed under the automatic route and Government approval is required for investment beyond 74%.
“Total FDI inflows in pharmaceutical sector has been Rs 43,713 crore during last five years (from 2018-19 to 2022-23). The sector has witnessed significant growth in FDI of 58% in the last financial year,” the government release said.
