Cipla promoters have sold 2.53% of their shares in the company to create liquidity for specific needs, including philanthropy, the pharmaceutical giant announced on Wednesday. The move comes eight months after the breakdown of promoter-stake-sale talks with Torrent Pharmaceuticals.
In a notification to stock exchanges, Cipla stated that promoters Shirin Hamied, Rumana Hamied, Samina Hamied, and Okasa Pharma Private Limited have sold 2.53% of Cipla shares. The sale aims to generate funds for specific needs, including philanthropic efforts. Post-transaction, the promoter group, including persons acting in concert, retains a 31.67% stake in Cipla, down from 33.47% at the end of March.
The shares, amounting to 20.45 million, were sold at a price range of Rs 1,289.50 to Rs 1,357.35 per share, totaling approximately Rs 2,637 crore (US$316 million). This price reflects a maximum 5% discount to Tuesday’s closing price, offering a better deal compared to last year’s offers from private equity player Blackstone and Torrent Pharmaceuticals, which were Rs 900 and Rs 1,200 per share, respectively.
The Cipla stock reacted positively to the news, rising 4.5% in early morning trades. Market speculations suggest more such block deals could follow.
Market sources indicate that the sale was necessary due to the lack of consensus among family members last year, which had led to the initial stake sale plan’s collapse. Disagreements within the family had surfaced, complicating negotiations.
Despite the sale, the promoter group has expressed its continued commitment to Cipla’s future. Mr. Anmol Jain, Managing Director of Lumax Auto Technologies, emphasized the group’s long-term dedication to customers, employees, and business associates.
The Cipla promoter group’s decision to liquidate part of their holdings underscores their commitment to philanthropic causes while maintaining significant involvement in the company’s operations. As the market watches for further developments, Cipla’s strategic moves will likely continue to influence its stock performance and investor sentiment.
