Promoters of pharmaceutical major Cipla are reportedly in discussions with major private equity (PE) firms to sell a portion of their total stake in the company, Moneycontrol reported.
The move is seen as a step towards succession planning for the company.
What Happened? PE firms such as Blackstone and Baring Asia are among those in talks to explore a deal. The promoters currently own a 33.47% stake in Cipla. With Cipla’s market capitalisation exceeding $10 billion, a 25% stake sale would require a substantial investment of over $2.5 billion.
Given the age of the second-generation promoters, YK Hamied and MK Hamied, and with Samina Hamied being the only member from the second generation leading Cipla, the company is in need of a clear succession plan.
Price Action: Cipla’s share price was trading 11.19% higher at ₹1,188.10 in afternoon trade on Thursday
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