On Tuesday, shares of India’s third-largest drug maker rose 2 percent to Rs 1,266 per share following the acquisition of South African company, Actor Pharma Ltd.
At 12:35 p.m., Cipla Ltd shares were trading at Rs 1,237.10 per share on the National Stock Exchange, down 0.16 percent from the previous close price. The company has a market valuation of Rs 99,864 crore.
According to the company’s exchange filing, Cipla South Africa, a 100% owned subsidiary of Cipla Limited, has signed a binding term sheet with Actor Holdings (Pty) Limited to acquire 100% of the issued ordinary shares of Actor Pharma Limited, the 5th largest generic medicine company in the South African private market, for ZAR 900 million (USD 48.6 million), subject to customary adjustments.
This acquisition would strengthen Cipla’s investment in its over-the-counter (OTC) business, as well as its path to becoming a major healthcare provider in South Africa. This strategic acquisition will help Cipla South Africa to unlock future growth prospects and cost synergies in the South African market.
The company’s revenue has increased by 17 percent year on year, from Rs 5,375 crore in Q1FY23 to Rs 6,328 crore in Q1FY24. During the same period, Net profit has significantly increased by 41 percent from Rs 706 crore to Rs 996 crore.
As per the latest financial year, the company’s margins have improved to a level where the operating margin is 19.03 percent and the net profit margin is 12.46 percent.
According to the recent shareholding pattern, the promoters hold 33.47 percent of the company, while Foreign institutional investors hold 25.49 percent and domestic institutional investors hold a 24.33 percent stake.
Cipla is a multinational pharmaceutical company that focuses on the development of new formulations. The company sells pharmaceuticals, bulk drugs, animal products, baked goods, detergents, room fresheners, and personal care items.
Written by Omkar Chitnis
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