The shares of one of the leading pharmaceutical firms gained 5.2% to ₹1,427.70 per share on Wednesday after the promoter group offloaded a 2.53% stake for ₹ 2,600 crore.
At 1:10 p.m., Cipla Ltd. shares were trading at ₹1,405.65 per share on the National Stock Exchange, up 0.75 percent from the previous close price. The company has a market valuation of ₹1,09,559 crore.
On May 15th, Cipla Limited announced that Promoter Group members, including Shirin Hamied, Rumana Hamied, Samina Hamied, and Okasa Pharma Private Limited, have collectively divested 2.53%, or 2.04 crore, of shares valued at ₹2,600 crore. This move aims to generate liquidity for specific purposes, including to fund philanthropy.
The sale took place at a price ranging from ₹1,289.50 to ₹1,357.35 per share, with a total of 20.45 million shares. These shares were offered at a discount of 5% compared to Tuesday’s closing price.
Following the transaction, the entire promoter group, including those Acting in concert, still retains a 31.67% stake in Cipla Limited. As of March quarter, the promoter holding in the company was reported at 33.47%.
Reports indicate that Blackstone, a private equity firm, had offered approximately ₹ 900 per share for Cipla’s promoter stake last year, while in September, Torrent Pharmaceuticals proposed an all-cash offer of ₹1,200 per share, which closely matched the prevailing market price of the stock.
Cipla’s stock surged 13% over the past six months and an impressive 52% over the last year.
Cipla Ltd is one of the leading pharmaceutical companies in India. The Company is in the business of manufacturing, developing, and marketing wide range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs).
Cipla’s product portfolio spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS, and various other key therapeutic segments.
The company generates a significant portion of its revenue from various regions: 43% from India, 30% from North America, and 12% from Emerging Markets & Europe.
In the fourth quarter of FY24, it reported a revenue of ₹6,163 crores, marking a 10% increase compared to the previous year. Profits after tax (PATT) rose to ₹939 crores, up by an impressive 79%. Additionally, EBITDA surged to ₹1,316 crores, reflecting a 13% year-on-year increase
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
