Cipla promoters said to explore stake sale to Blackstone, Baring Asia

Cipla’s market capitalisation is over $10 billion, a 25 percent stake sale will require a large investment of over $2.5 billion, sources said

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26 Aug, 2025 12:21

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Pharma major Cipla's promoters are in talks with major private equity (PE) players to sell a part of their total holding in the company, three independent sources with direct knowledge of the development said. They added that 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 promoters own 33.47 percent stake in Cipla and this move is seen as a step towards succession planning for the company, sources said.

E-mail queries sent to Cipla and its promoter did not elicit any response and Blackstone, Baring Asia also did not offer a comment on the deal development.

Moreover, one of the sources added, “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 people in the know of the deal also mentioned that with the second generation promoters, YK Hamied and MK Hamied, Chairman & Vice Chairman Cipla, respectively being octogenarians and Samina Hamied, Executive Vice Chairperson, being the only member from the second generation to lead Cipla, the company needs a clear road map on succession.

ALSO READ: Cipla zooms 9% on stronger-than-expected Q1; brokerages cheer, raise targets

A source also added that the promoters are “well-coordinated” and have been taking active role in the company’s operations. “Succession issue has been a long standing concern at Cipla, company needs a clear leadership plan. It has been often seen as a takeover candidate for this reason," one of the sources shared.

With Cipla’s market capitalisation being over $10 billion, a 25 percent stake sale will require a large investment of over $2.5 billion, sources said adding that PE firms are trying to stitch together a consortium of investors to fund the large deal for a bigger chunk of the stake on offer. A source also said that pharma is a sector of choice and any opportunity in the sector is attractive for private equity, especially, after the success of KKR’s bet on JB Chemicals.

Meanwhile, shares of Cipla on July 27 traded at day's high to nearly 10 percent at Rs 1,171.70 apiece on BSE at the time of publishing the story.