Blackstone plans to submit bid for over 33% stake in Cipla; stock hits fresh high

4 Aug 2023 , 10:23 AM

Blackstone is all set to make a non-binding proposal next week for a 33% promoter holding in Cipla. It is India’s third-largest generics company by revenue.

Following this news, the company’s counter touched a new 52-week high of Rs 1,238.70.

With this, the Hamied family’s eventual exit from the pharma company, which was founded in 1935, will begin publicly.

Earlier it was reported that Cipla’s top shareholders are likely to offload about 33.47% stake in the company to private equity players including Blackstone and Baring Asia. To advise on the deal, the company hired an investment bank.

Cipla reported a 45.1% increase in total net profit in Q1FY24 to Rs 995.7 crore, up from Rs 696.4 crore in the same quarter last year.

Revenue for the quarter ended June 2023 climbed 17.7% year-on-year to Rs 6,328.9 crore from Rs 5,375.2 crore, driven by performance in India, the United States, and South Africa.

Cipla’s Q1 performance exceeded expectations due to solid US sales growth and sustained progress in the home market. As a result, analysts are positive on Cipla shares, with most brokerage houses boosting their target price.

At around 10.17 AM, Cipla was trading 4.70% higher at Rs 1,220.70 per piece, against the previous close of Rs 1,165.85 on NSE.

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