Cipla promoters mull stake sale to top PE firms Blackstone, Baring Asia: Report
Cipla are in talks with top private equity (PE) players to sell a part of their total holding in the company, according to a media report. An investment bank has been hired to advise on the deal, and Blackstone, Baring Asia, among others, are in talks to explore a deal, the report said, citing three independent sources. The promoters own a 33.47% stake in Cipla, and this move is seen as a step towards succession planning for the company, the report said.
“They (promoters) are evaluating options for a strategic investor to come on board to revamp future strategy to enhance capital allocation, operational efficiency to improve return metrics,” the report said, further citing one of the sources. The news was reported by Moneycontrol. However, the company has issued a clarification on CNBC-TV18, saying that «the company is not aware of any event that requires disclosure under Listing Regulations.
The company will make appropriate disclosure in compliance with the listing regulations as and when any such requirement arises.» The stock jumped over 10% to the day's high of Rs 1,219.40 in intra-day trade on NSE, riding on the strong June quarter earnings. The Mumbai-headquartered company reported a 45% year-on-year (YoY) growth in consolidated net profit in Q1 to Rs 996 crore. The total revenue from operations grew by nearly 18% to Rs 6,329 crore.
Its consolidated operating profit, calculated as earnings before interest, taxes, depreciation, and amortization (EBITDA), grew by 31% on year to Rs 1,494.02 crore. Operating margin expanded a sharp 234 basis points to 23.6%. Cipla’s India business reported robust growth across branded prescription, trade generics, and consumer health over the last year, resulting in a 12% growth in
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