Torrent Pharma Competes for Cipla Stake in Major Pharma Deal

23 Aug 2023 , 02:39 PM

Torrent Pharma vies for ownership of the Hamied family’s stake in Cipla, heralding a significant potential pharmaceutical deal. The move marks a bid to control Cipla, a major player in the sector, and stands as the largest pharma deal since 2014.

Torrent Pharma’s interest stems from its desire to acquire a company with metrics more than 2.3 times its revenue, double its profit, and 1.46 times its market value. Competitors in the race include Blackstone and Baring PE Asia-EQT, while Torrent Pharma considers forming a consortium with private equity funds, advised by JP Morgan.

Successful completion of the deal would establish Torrent Pharma as India’s second-largest pharmaceutical entity by revenue, trailing only Sun Pharma. Funding discussions with multiple lenders are underway, and an all-cash offer is on the table, with significant progress reported over the past month.

The Hamied family, second-generation founders of Cipla, includes YK Hamied and MK Hamied, with succession concerns and tax issues potentially influencing the decision to sell their stake. 

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