Suven: Cabinet okays FDI of up to Rs 9,589 crore for 76.1% stake in Hyderabad-based Suven Pharma

HYDERABAD: The Cupboard Committee on Financial Affairs (CCEA) has given its seal of approval to a international direct funding (FDI) of as much as Rs 9,589 crore in Hyderabad-based Suven Prescription drugs Ltd by Cyprus-based Berhyanda Ltd for a 76.1% stake.
The Cyprus-based entity is managed by Introduction Funds, that are managed by US-based non-public fairness participant Introduction Worldwide Company.
The CCEA, which is chaired by Prime Minister Narendra Modi, gave its nod on Wednesday after the proposal was evaluated and cleared by numerous departments and regulatory our bodies reminiscent of Securities & Alternate Board of India (Sebi), Reserve Financial institution of India (RBI) and the Competitors Fee of India (CCI).
The deal necessitated authorities approval as at present, below the prevailing coverage, FDI of as much as solely 74% is allowed in brownfield pharma initiatives below the automated route. The approval, nonetheless, is topic to fulfilment of all the foundations and laws relevant.
The CCEA nod came to visit eight months after Suven Pharma’s promoters, the Jasti household and entities held by them, inked a definitive settlement with Introduction Worldwide to promote their 50.1% stake within the CDMO (contract growth and manufacturing organisation) participant for a consideration of Rs 6,300 crore at a value of Rs 495 per share.
The Jasti household and promoter group holds 60% stake in Suven Prescription drugs, which is listed on the Bombay Inventory Alternate and Nationwide Inventory Alternate, as of the quarter ended June 30, 2023, with the remaining 40% held by the general public.
Introduction can be making an open supply to accumulate an extra 26% stake within the firm from public shareholders, taking its complete holding in Suven Pharma to 76.1% and should even hike its stake as much as 90.1%.
Introduction had mentioned earlier that publish the completion of the acquisition, it will discover the merger of its portfolio firm Cohance Lifesciences with Suven as a part of its technique to construct a number one end-to-end CDMO and service provider API participant servicing the pharma and specialty chemical markets.

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