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Exclusive: Suven Pharma kickstarts stake sale process; promoters open to exiting

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Suven Pharma has kickstarted the process for offering stakes to strategic investors, CNBC-TV18 learns from sources. The company has reached out to private equity investors and other potential investors.

Suven Pharma has kickstarted the process for offering stakes to strategic investors, CNBC-TV18 learns from sources. The company has reached out to private equity investors and other potential investors.
Sources said the promoters, who own 60 percent of the company, were open to selling their entire stake.
With the recent run-up in the pharma stocks, the counter has a market cap of over Rs 8,800 crore. The deal proceeds are likely to be used to fund Suven Life Sciences and other group ventures.
Appointed deal advisor Barclays is said to have reached out to the private equity & strategic players for the stake sale process.
The Group had earlier demerged the company from Suven Life Sciences for value unlocking and a possible monetization. Suven Pharma is into contract manufacturing & specialty chemicals business which is looking very attractive for the investors due to a bid to reduce dependence on China.
An analyst points out that the commercialization of molecules over the next few years provides growth opportunities for Suven Pharma.
A source suggests that while a pharma arm of a business conglomerate is on the prowl for acquisitions, it may not aim for Suven Pharma as it’s a large deal with the recent run-up in the valuations.
CNBC-TV18 reached out to Suven Pharma but did not receive an on record comment on the deal development.
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