Cipla promoters sell 2.53% stake worth Rs 2,600 cr to fund philanthropy

BNE News Desk

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New Delhi The promoters of pharma major Cipla on Wednesday sold 2.04 crore shares of the company in a block deal which could be worth around Rs 2,600 crore.

As per reports, Cipla stated in a regulatory filing that Shirin Hamied, Rumana Hamied, Samina Hamied and Okasa Pharma Private Limited (all categorised as Promoter Group) have sold 2.53 percent shares of Cipla Limited to create liquidity for specific needs including philanthropy. 

Following the stake sale, the entire promoter group (including Person Acting in Concert) retains 31.67 percent ownership of Cipla and stated that they remain dedicated to the company's future success. 

Earlier in February 2022 also, Hamied family members had sold 2.5 percent of their stake in block deals.  

Notably, Cipla's fourth-quarter earnings increased by 79 percent to Rs 939 crore in March, while revenue increased by 10 percent to Rs 6,163 crore. In FY24, it reported its best EBITDA margin to date, at 24.6 percent. Profit surged 47 percent year on year to a record Rs 4,106 crore, while revenues increased 14 percent to Rs 25,455 crore.

According to market sources, last year, private equity player Blackstone offered around Rs 900 per share for Cipla's promoter stake, and in September, Torrent Pharmaceuticals made an all-cash offer of Rs 1,200 per share. Torrent's offer was close to the current market price of the stock.

The promoters were able to negotiate a lower price through this block sale. The promoter group members indicated above sold 20.45 million shares at a price ranging from Rs 1,289.50 to Rs 1,357.35 per share, for a total deal value of about Rs 2,637 crore .

The shares are offered at a maximum 5 percent discount to Tuesday's closing price.

According to market sources, last year's stake sale proposal failed due to a lack of unanimity among family members. The negotiations failed when family divisions surfaced.

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BNE News Desk