Cabinet gives nod to Rs 9,589 crore FDI in Suven Pharma

The government on Wednesday approved a foreign direct investment (FDI) proposal worth up to Rs 9,589 crore in Suven Pharmaceuticals by Cyprus-based Berhyanda Ltd.

As per the proposal, the Cyprus-based company will acquire up to 76.1 per cent in the Indian pharmaceutical company by way of the transfer of shares from existing promoter shareholders and public shareholders through a mandatory open offer, according to an official statement released after a meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.

The approved investment aims to generate jobs and lead to capacity expansion in the Indian drug maker through investments in plants and equipment, and the deal may take the aggregate foreign investment in Suven Pharma to as high as 90.1 per cent, according to the statement. 

The proposal, evaluated by regulators and relevant agencies including SEBI, the RBI and the CCI, is subject to the fulfillment of applicable rules and regulations.

Currently, the government allows up to 100 per cent FDI in greenfield pharma projects, and up to 74 per cent in brownfield projects through the automatic route.

The country's pharma sector registered total FDI inflows of Rs 43,713 crore from 2018-19 to 2022-23.

Suven Pharma exports APIs and advanced drug intermediates, and provides a wide range of services to pharma, agrochemical and biotech companies around the globe.

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