Why Cipla Shares Are Shooting Up Today

Shares of pharma giant Cipla skyrocketed nearly 5% on Friday on reports that private equity major Blackstone was eyeing a massive stake in the firm.

What Happened: Blackstone is set to submit a non-binding bid to buy out the entire promoter stake of 33.47% in India’s third-largest pharma company by market cap next week, the Economic Times reported.

If Blackstone does succeed in its offer, it will trigger an open offer for an additional 26% of Cipla. If fully subscribed, Blackstone could own as much as 59.4% of Cipla, which would be one of the largest private equity-led buyouts in India.

Such a deal would formally begin a process that could see the Hamied family, which founded the company in 1935, bowing out of the firm.

Price Action: Cipla’s share price surged 5.07% to ₹1,225.00 in early trade on Friday.

Read Next: Zomato Shares Flying As Company Delivers First Profit: Here’s What Global Analysts Want You To Do

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesM&ANewsMarketsblackstoneCipla