Cipla Shares Jump 4% as Promoters Sell 2.53% Stake

by | May 16, 2024 | 0 comments

Cipla has confirmed that the promoter family, the Hamieds, sold a 2.5 percent stake in the company.

To begin trading on May 15, the stock price of Cipla, a leading drug maker in India, rose by 4% in early trade following three block deals. These transactions involved a total of approximately 204 million shares, or about 2.52% equity holding in Cipla.

Subsequently, it was confirmed that the Hamied family, promoters of Cipla, had sold a 2.5% stake in the company.

A report by CNBC-Awaaz on May 14 indicated that the promoter family along with Okasa Pharma would sell up to 2.53% of their holdings. The sale aimed at raising Rs26.37 billion according to CNBC-Awaaz report.

Read Also: ICICI Securities Delisting Ongoing, NCLT Defers to July

According to this report there is also going to be an outlay period for sellers within this block deal which is ninety days as mentioned before; latest shareholder data indicates that promoter family holds thirty three point four seven percent stake at cipla.

Additionally, previously in February 2020 Hamieds had divested another 2.5% in the open market. Within its board composition, there are three non-executive members from promoter family including Yusuf Hamied (Chairman), his younger brother MK Hamied and daughter Samina.

In mid-2023 there were talks around whether they should dispose of their entire stakes as part of their succession plan for the company by promoter families.

Read Also: Devyani International Q4: KFC Operator Reports Rs 49 Cr Loss

They also noted that private equity players such as Blackstone Group LP and Baring Asia and peers like Torrent Pharma made non-binding offers towards acquiring this stake resulting into huge speculation worldwide without any definite agreement till now being codified between involved parties. Moreover, last week Cipla posted good Q4 financial results underlining its net profit which increased by 79% YoY to INR9.39 billion during January-March period.

However, Cipla’s revenue for the quarter ended 31 March rose by 13% YoY to INR61.63 billion, slightly lower than expected INR62.24 billion. The company also finished the divestment of QCIL in Uganda resulting in reduction of revenue previously reported by it for previous quarter.


Submit a Comment

Your email address will not be published. Required fields are marked *

17 − fourteen =

Related Articles