Cabinet Approves Rs 9,589 Cr FDI In Suven Pharmaceuticals By Berhyanda

On Wednesday the Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi approved the Foreign Direct Investment (FDI) proposal for foreign investment of up to Rs 9,589 crore in Suven Pharmaceuticals by Cyprus-based company Berhyanda, Union Ministry of Chemicals and Fertilizers said in a statement. 

The approval is for the acquisition of up to 76.1 per cent equity shares of Suven Pharmaceuticals, listed on the National Stock Exchange of India and the Bombay Stock Exchange by Berhyanda, Cyprus, by way of transfer of shares from existing promoter shareholders and public shareholders through a mandatory open offer.

The government said that the aggregate foreign investment may increase up to 90.1 per cent in Suven Pharmaceuticals. The proposal has been evaluated by SEBI, RBI, CCI and other agencies. 

As per the extant FDI Policy, 100 per cent foreign investment is allowed under automatic route in greenfield pharmaceutical projects. In brownfield pharmaceutical projects, FDI up to 74 per cent are allowed under the automatic route and Government approval is required for investment beyond 74 per cent. 

Total FDI inflows in the pharmaceutical sector have been Rs 43,713 crore during the last five years (from 2018-19 to 2022-23). The sector has witnessed significant growth in FDI of 58 per cent in the last financial year.

The approved investment aims to generate new jobs, and capacity expansion of the Indian company through investments in plant and equipment.