Cabinet Approves Close to INR 9,589 Cr FDI in Telangana's Suven Pharmaceuticals

There is a potential for the total foreign investment to expand even further, reaching up to 90.1% in Suven Pharmaceuticals Limited. This strategic investment facilitates the creation of new job opportunities and supports the expansion of the Indian company through investments in plant & equipment. 

The Cabinet Committee on Economic Affairs (CCEA) chaired by PM Narendra Modi has approved the Foreign Direct Investment (FDI) of up to INR 9,589 Cr. in Telangana's Suven Pharmaceuticals Limited by Cyprus' Berhyanda Limited.

Reportedly, Berhyanda Limited has received approval to buy up to 76.1% equity shares of Suven Pharmaceuticals, a public limited Indian pharmaceutical company listed on the NSE & BSE, through the transfer of shares from existing promoter shareholders and public shareholders via a mandatory Open Offer.

However, the FDI can be extended further, reaching up to 90.1% in Suven Pharmaceuticals Limited, as per a report by The Indian Express.

Moreover, Berhyanda Limited, backed by Advent Group, is expected to provide Suven Pharmaceuticals with a larger platform for expanding its business operations. This partnership further aims to enhance productivity and accelerate growth thereby improving the Indian pharmaceutical's environment, health and safety standards.

Additionally, it aims to offer valuable training opportunities to the existing professionals associated with the company.

The approval for this investment has been granted following rigorous evaluation by the key regulatory bodies including SEBI, RBI and CCI among other relevant agencies.

This strategic investment facilitates the creation of new job opportunities and supports the expansion of the Indian company through investments in plant & equipment.

In alignment with the objective of introducing global best practices through technology and innovation, the Government of India has formed the FDI Policy. This move is anticipated to foster rapid economic growth and development.

Additionally, the FDI policy seeks to provide supplementary capital for expanding domestic productivity, enhancing competitiveness, and generating employment opportunities, among other advantages.

In another similar event, the Advent group acquired a majority stake in ZCL Chemicals Ltd, an Indian manufacturer of speciality chemicals and active pharmaceutical ingredients (APIs), for an undisclosed amount in March 2021.