Cipla’s promoter group is set to sell a 2.53% stake in India’s third-largest drugmaker through a block deal valued at approximately 26.37 billion rupees (nearly $316 million), according to a report by CNBC-TV18 on Tuesday, citing sources.
The shares will be sold at a price range of 1,289.5 rupees to 1,357.35 rupees per share. This range indicates that the sale will occur at or below the stock’s last closing price, which had dropped by 4% to 1,357.35 rupees.
Cipla, with a market capitalization exceeding $13 billion, is widely recognized for producing the anti-allergy medication Cetirizine. The company’s significant presence in the pharmaceutical industry makes this stake sale a notable event for investors and market watchers.
The proposed transaction follows earlier reports from July 2023, where it was indicated that Cipla’s leading shareholders were in discussions to divest part of their holdings to private equity firms, including Blackstone and Baring Asia. This move underscores the ongoing interest in Cipla from global investors and the strategic repositioning of its major shareholders. As the news of the block deal unfolds, market participants will closely monitor the impact on Cipla’s stock performance and the broader implications for the pharmaceutical sector in India.
