Shares of Cipla slipped 5 per cent to Rs 910 on the BSE in Tuesday’s intra-day trade after more than 2 per cent of the total equity of pharmaceutical company changed hands via block deal.
At 09:15 am; around 20.7 million equity shares representing 2.57 per cent of total equity of Cipla changed hands on the BSE, the exchange data showed. The name of the buyers and sellers are not immediately ascertained.
At 09:21 am; Cipla traded 4 per cent lower at Rs 918.25, as compared to 0.67 per cent rise in the S&P BSE Sensex. The stock had hit a 52-week high of Rs 1,005 on September 29, 2021.
According to media reports, promoters of Cipla, Yusuf Khwaja Hamied and Mustafa Khwaja Hamied, were to sell up to 2.5 per cent of their stake in the company through a block deals that could fetch about Rs 1,850 crore.
As on December 31, 2021, Yusuf Khwaja Hamied held 20.43 per cent stake, while Mustafa Khwaja Hamied held 4.31 per cent holding in Cipla, the shareholding pattern data showed. Cipla promoters held total 36.1 per cent stake in the company. After this deal, their holding will come down to about 33.6 per cent.
According to the terms of the deal, Yusuf Khwaja Hamied and Mustafa Khwaja Hamied, part of Cipla’s promoter group, are selling these shares. The base deal size is of about 16 million shares, representing about 2 per cent of the company’s equity. The sellers also have the option to offload another 4.03 million shares (about 0.5 per cent equity); in case there are strong demands from the prospective buyers, who are all institutional investors, the Times of India report suggested.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU