Advent gets Cabinet’s green signal to acquire Suven Pharma for Rs 9,589 crore

14 Sep 2023 , 11:45 AM

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, accepted an FDI proposal for up to Rs 9,589 crore in Suven Pharmaceuticals Limited by private equity company Advent International through its Cyprus-based Berhyanda Ltd.

In December last year, Advent International signed a definitive agreement to acquire a 50.1% stake in Hyderabad-based Suven Pharmaceuticals, a listed contract research and manufacturing services (CRAMS) firm promoted by Venkat Jasti and his family members, for Rs 6,313 crore, or Rs 495 per share.

In addition, Advent will conduct an open offer for an additional 26% of the company.

According to a government announcement, total foreign investment in Suven Pharmaceuticals may go upto 90.1%.

According to the statement, authorisation was granted after the proposal was reviewed by the relevant departments, including the RBI and SEBI, and is subject to compliance with all applicable rules and regulations.

The whole investment in Berhyanda is held by Advent Funds, which pool investments from multiple Limited Partners (LPs). Advent International Corporation, based in the United States, manages the Advent Funds.

The approved investment intends to create new jobs and expand the Indian company’s capacity through investments in plant and equipment.

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