“Indian Cabinet Greenlights ₹9,600 Crore FDI Boost for Suven Pharmaceuticals”
The Indian government has granted approval for foreign direct investment (FDI) of up to ₹9,600 crore in Suven Pharmaceuticals by Cyprus-based Berhyanda Ltd. This investment will allow the acquisition of a majority stake in Suven Pharmaceuticals, marking a significant development in the pharmaceutical sector.
In a significant move to bolster foreign investment in India’s pharmaceutical sector, the Indian government has granted approval for a substantial foreign direct investment (FDI) of up to ₹9,600 crore in Suven Pharmaceuticals. This landmark decision comes as Cyprus-based Berhyanda Ltd. seeks to acquire a controlling interest in Suven Pharmaceuticals.
The Cabinet Committee on Economic Affairs met recently and officially endorsed the proposal for the acquisition of up to 76.1% of Suven Pharmaceuticals’ shares by Berhyanda Ltd. This acquisition will be facilitated through the transfer of shares from the company’s existing promoter shareholders and public shareholders via a mandatory open offer.
Furthermore, the approval carries the potential for the aggregate foreign investment in Suven Pharmaceuticals to reach up to 90.1%, signifying a significant shift in ownership and control within the pharmaceutical company.
The proposal for this substantial foreign investment underwent a thorough evaluation process by various regulatory bodies, including the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), and the Competition Commission of India (CCI), among others. The Indian government’s decision to grant approval was based on a comprehensive examination of the proposal by the relevant departments, RBI, and SEBI, with the caveat that all applicable rules and regulations must be adhered to.
India’s pharmaceutical sector has garnered substantial foreign direct investment in recent years, reflecting its robust growth and potential. Over the last five years, from 2018-19 to 2022-23, the sector has witnessed a cumulative FDI of ₹43,713 crore. Notably, the past financial year alone saw an impressive 58% surge in foreign direct investment, indicating strong investor confidence in the Indian pharmaceutical industry.
This approval for significant FDI in Suven Pharmaceuticals by a Cyprus-based firm reaffirms India’s commitment to attracting foreign investment in key sectors and fostering growth and innovation within the country’s pharmaceutical landscape. It also highlights the sector’s resilience and potential to serve as a global hub for pharmaceutical research and production.
Sources By Agencies
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