Cipla promoter group sells 2.53% stake to generate liquidity

Pharmaceutical major Cipla Limited announced on Wednesday that several members of the promoter group—including Samina Hamied, Rumana Hamied, Shirin Hamied, and Okasa Pharma Private Limited—have collectively sold 2.53% stake in the company.

The tendered shares, amounting to 20,450,375 in total, saw the transfer of 8,954,750 shares by Samina Hamied, 4,943,250 shares by Rumana Hamied, 6,363,000 by Shririn Hamied, and 189,375 shares by Okasa Pharma, the company said in an exchange filing. The notice mentioned that the sales were conducted to “create liquidity for specific needs, including philanthropy.”

After the sale, the promoter group’s overall holdings in Cipla were reported to have been reduced to 31.67%. The announcement maintained that the promoter group continues to see a growing future for the company.

The transaction took place on May 15, 2024, per the exchange filing. Cipla did not share any further details concerning the buyers of these shares or the sale price. However, the move is likely to have a considerable impact on the company’s financial structure and ownership.

The Hamied family, who were among the substantial sellers, have long established roots in the pharmaceutical industry. This transaction represents a significant realignment of the company’s ownership structure while underscoring the promoter group’s commitment to the company. The move may raise some eyebrows amongst Cipla investors, but the stated motive of philanthropy might ease any concerns.

“Cipla’s growth story is promising, and the stake sale is an opportunity for long-term investors to build their position. The Cipla stock has relatively underperformed peers in the last few months,” said Vishal Manchanda, Senior Vice President–Institutional Research at Systematix, a stock broking firm. Analysts view the transaction as having minimal impact on the company’s business. “Despite this transaction, Cipla’s financial health remains robust for the next two to three years, thanks to a strong pipeline of generics and formulations business. This stake sale will have minimal impact on the company as it is professionally managed,” said analyst Tushar Manudhane of Motilal Oswal Financial Services.