Suven Pharma shares hit 52-week high after Cabinet approves FDI worth Rs 9,589 crore

Shares of Suven Pharmaceuticals Ltd hit a fresh 52-week high today after central government approved a foreign investment of up to Rs 9,589 crore in the pharma firm by Cyprus-based Berhyanda Ltd. The approval by Cabinet Committee on Economic Affairs (CCEA)  relates to acquisition of up to 76.1 per cent shares of Suven Pharmaceuticals by Berhyanda by way of transfer of shares from existing promoter shareholders and public shareholders through mandatory open offer.

Subsequently, Suven Pharmaceuticals shares zoomed 8.53% to a fresh high of Rs 557.40 against the previous close of Rs 513.55 on BSE.  However, the stock erased gains and ended at Rs 517.40 , up 0.75% on BSE.

Total 10.27 lakh shares of the firm changed hands amounting to a turnover of Rs 53.48 crore. Market cap of the firm rose to Rs 13171 crore.

The stock hit a 52 week low of Rs 375 on April 5, 2023. Suven Pharmaceuticals shares have a beta of 0.2, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 54.1, signaling it's trading neither in the overbought nor in the oversold zone. Suven Pharmaceuticals shares are trading higher than 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. In the last one year, the Suven Pharmaceuticals stock has surged 7.1%.

The aggregate foreign investment may rise to up to 90.1 per cent in Suven Pharma. Sebi, RBI, CCI and other relevant agencies have evaluated the proposal. The approval has been granted after examination of the proposal by departments concerned, RBI and Sebi and is subject to the fulfilment of all rules and regulations as applicable in this regard.

 The pharma sector has attracted a FDI of Rs 43,713 crore during last five years (from 2018-19 to 2022-23). The sector has seen a 58 per cent growth in FDI in the last financial year.

Total foreign direct investment (FDI) in the pharmaceutical sector has been Rs 43,713 crore during 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.

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