Blackstone and LPs make a non-binding offer to buy control of Cipla

11 Aug 2023 , 11:28 AM

According to news reports, Blackstone, the largest private equity firm in the world with assets under management (AUM) that recently surpassed $1 trillion, has put in a non-binding bid with its limited partners to take over the pharmaceutical giant Cipla, which is currently being sold by its promoter Hamied family.

Investors that make a financial commitment to a private equity business are known as LPs. Pension funds, institutional accounts, and affluent people are frequently included.

If the sale goes through, it will be the largest private equity transaction in India Inc. history.

The market capitalization of Cipla was Rs 1,02,198.82 crore at the close of trading on August 9; at this price, the Hamied family’s whole 33.47% share is worth Rs 34,205 crore. The open offer trigger would increase the deal’s overall size.

The Blackstone company invests on behalf of the greatest institutional investors in the world, including endowments, sovereign wealth funds, and pension systems that provide retirement benefits for more than 92 million teachers, firefighters, nurses, and others, according to the company’s website.

Additionally, the Qatar Investment Authority (QIA) has been mentioned in reports as a potential contender for the Cipla promoter stake. Some of the private equity firms that have previously expressed interest in the domestic pharma industry include KKR, Advent International, TPG, Bain Capital, Warburg Pincus, Carlyle, and Chrys Capital. However, none of the prior cheque amounts come close to the planned Cipla deal.

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