Cipla falls 1.2% amid weak market; divests 51% in UAE subsidiary

Cipla shares have gained 33.38 percent over the past six months.

Cipla slipped 1.2 percent amid weak market sentiment on October 3 morning, as the pharma player divested a 51 percent stake in UAE-based Saba Investment for a total consideration of $6 million.

Cipla Middle East Pharmaceuticals, UAE and Cipla Medica Pharmaceutical and Chemical Industries, Yemen have ceased to be subsidiaries of the firm.

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Shares of Cipla have been in focus recently after reports suggested that Torrent Pharma might acquire the Hamied family’s stake in Cipla.

Torrent Pharmaceuticals was likely in advanced talks with various investors to form a consortium to allow the firm to fund the buyout, reports said.

Over the past year, Cipla shares have seen a 5.15 percent gain in the stock price, with a 33.38 percent jump over the past six months. Year-to-date, Cipla stock has risen by 11.02 percent.

As of June 2023, the promoters held a 33.5 percent stake in the pharmaceutical giant, while domestic institutional investors (DIIs) and foreign institutional investors (FIIs) held 24.3 percent and 25.5 percent. Of the DIIs, mutual funds held 15.4 percent. The public has a 16.69 percent share in Cipla.

At 9.40 am, the stock was trading at Rs 1,172 on the National Stock Exchange, down by 1.19 percent from the previous close.

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