The government on Wednesday approved FDI of up to Rs 9,589 crore in Suven Pharmaceuticals by Cyprus-based Berhyanda Ltd to fund capacity expansion of the Indian pharma company.

The proposal has been evaluated by Sebi, RBI, CCI and other relevant agencies, said an official release after the meeting of the Cabinet Committee on Economic Affairs (CCEA).

“The approval is for acquisition of up to 76.1 per cent equity shares of Suven Pharmaceuticals Limited...by Berhyanda Limited, Cyprus, by way of transfer of shares from existing promoter shareholders and public shareholders through mandatory open offer,” the release said.

The aggregate foreign investment may increase up to 90.1 per cent in Suven following the infusion of foreign capital.

Suven is listed on the BSE and NSE. The company’s shares closed at Rs 517.40 apiece on BSE, up 0.75 per cent.

According to the release, entire investments in Berhyanda Ltd are held by Advent Funds, which pool investments from various limited partners (LPs).

Advent Funds are managed by Advent International Corporation, an entity incorporated in the US.Advent India started investments in India in 2007, and so far has invested about Rs 34,000 crore in 20 Indian companies across healthcare, financial services, industrial manufacturing, consumer goods and IT services sectors.

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

It further said the association with Advent Group is expected to provide larger platform to Suven by expanding business operations

According to FDI policy, 100 per cent overseas investment is allowed under automatic route in greenfield (new) pharmaceutical projects.

In brownfield pharmaceutical projects, FDI up to 74 per cent is allowed under the automatic route and government approval is required for investment beyond 74 per cent.

The cabinet also approved the allotment of Rs 1,650 crore to the distribution of 75 lakh free cooking gas connections as part of the Pradhan Mantri Ujjwala Yojana (PMUY) over three years.

The cabinet also cleared the third phase of the eCourts project with a financial allocation of Rs 7,210 crore.

The first refill and stove will also be provided free of cost to the beneficiaries. They will get subsidised LPG of Rs 200 for up 12 refills a year.

The eCourts enables the judiciary with ICT facilities. The second phase of the project ended this year.