The Union Cabinet has approved the FDI proposal for foreign investment of up to Rs.9589 crore in M/s Suven Pharmaceuticals Limited by M/s Berhyanda Limited, Cyprus.
The Union Ministry of Chemicals and Fertilizers has informed that the approval is for acquisition of up to 76.1% equity shares of M/s Suven Pharmaceuticals Limited, a public limited Indian pharmaceutical company listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, by M/s Berhyanda Limited, Cyprus, by way of transfer of shares of from existing promoter shareholders and public shareholders through mandatory Open Offer.
The ministry pointed out that the aggregate foreign investment may increase up to 90.1% in M/s Suven Pharmaceuticals Limited.
The ministry stated that the proposal has been evaluated by SEBI, RBI, CCI and other relevant agencies and it 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.
The ministry stressed that the entire investments in foreign Investor Company, M/s Berhyanda Limited 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 USD 75 billion in 42 countries. Advent India started investments in India since 2007 and so far it has invested about Rs 34000 crores in 20 Indian companies across healthcare, financial services, industrial manufacturing, consumer goods and IT services sectors,” the ministry further informed.
The ministry emphasized that as per the extant FDI Policy, 100% foreign investment is allowed 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 the pharmaceutical sector has been Rs.43,713 crore during the last five years (from 2018-19 to 2022-23). The sector has witnessed significant growth in FDI of 58% in the last financial year.