Cipla promoters plan to sell 2.53% stake

Mumbai: The promoters of pharmaceutical major Cipla Ltd,  including Shirin Hamied, Samina Hamied, Rumana Hamied and Okasa Pharma Pvt. Ltd, are looking to sell 2.53% of their stake in the company, according to a term sheet reviewed by Mint.

The promoters are offering to sell up to 20.45 million shares, with a total deal value estimated to be around ₹2,637 crore ($316 million). The shares are being offered within a price range of ₹1,289.50 to ₹1,357.35 per share, representing a discount of 0-5% compared to Cipla's closing share price of ₹1,357.35 on the NSE on 14 May 2024.

Kotak Securities Ltd is managing the sale process. Cipla spokespersons did not respond to emails seeking comment.

Also read: Cipla's Q4 profit jumps 79%, but fails to cheer Street

Currently, the promoters hold a combined stake of 4.26% in Cipla, with Shirin Hamied, Samina Hamied, Rumana Hamied and Okasa Pharma holding 0.79%, 2.22%, 1.23%, and 0.02%, respectively.

This move comes amidst a strong year for Cipla's stock price, which has surged by 45% so far in 2024, significantly outperforming the benchmark Nifty 50 index that has gained 21.3%.

Also read: Family rift clouds $7 bn sale of Cipla

Interestingly, this is not the first time the Cipla promoters have explored stake dilution. On 27 July 2023, similar reports surfaced, leading to a jump of nearly 12%  in the company's stock price to ₹1,171.55 on the BSE.