The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved an FDI proposal for up to Rs.9589 crore in Suven Pharmaceuticals Limited by private equity firm Advent International through its Cyprus-based Berhyanda Ltd on Sept 13.

In December of 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 launch an open offer for an additional 26% of the company. According to a government statement, total foreign investment in Suven Pharmaceuticals could reach 90.1%.

According to the statement, approval 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 entire investment in Berhyanda is held by Advent Funds, which pool investments from various Limited Partners (LPs). Advent International Corporation, based in the United States, manages the Advent Funds.

Advent International Corporation, founded in 1984, has made approximately USD 75 billion in investments in 42 countries. Advent India began investing in India in 2007, and has since invested approximately Rs 34000 crores in 20 Indian companies spanning healthcare, financial services, industrial manufacturing, consumer goods, and IT services.