Suven Pharma shares opened higher on December 26 after private equity firm Advent International confirmed it would acquire a substantial stake in the company.

The stock was quoted at Rs 501 on the NSE at 9.40 am, up 1.13%. It opened at Rs 515 per share, 3.8% higher than Friday’s close of Rs 496.05. Volume was 10.8 lakh shares, above the 20-day average of 335,000 shares.

According to an exchange filing, Advent International will initially acquire a 50.1% stake in the company at Rs 495 per share, valuing it at Rs 6,311 crore. It will then put another 26% stake on public sale for a takeover value of Rs 3,276 crore.

Advent International will hold 76.10% of the voting share capital following the public offer, while promoter group Jasti Property and Equity Holdings will reduce its stake to 9.9% from 60%.

Suven Pharma, which demerged from parent company Suven Life Sciences in 2020, is up more than 238% since its IPO. The company is a leader in India’s pharmaceutical CDMO (Contract Development and Manufacturing Organization) space.

Advent International also has its own brand identity Cohance Lifesciences for its CDMO and API platform. With the Suven Pharma takeover, it may consider merging the two entities.