Cipla Share Price Drops As 1.72% Equity Changes Hands

Cipla's Ltd. stock saw a decline on Monday after a large block of shares changed hands in pre-market trading. A total of 1.39 crore shares, representing 1.72% of the company’s equity, were traded at Rs 1,518.75 per share. This is a discount of over 1% from Friday's closing price of Rs 1,533.90, contributing to the downward movement in the stock. The block deal was done in four block trades, as per Bloomberg.

The large trade comes amid news that Cipla’s promoters are looking to raise up to Rs 2,000 crore through a share sale. Despite short-term volatility in the stock, the move is expected to generate capital for the company.

Cipla is a global pharmaceutical company with over 1,500 products available in more than 80 countries, Cipla’s offerings include treatments for respiratory diseases, cardiovascular conditions, arthritis, diabetes, depression, and paediatric disorders. The company operates 47 manufacturing facilities worldwide, and is the third-largest drug producer in India.

The scrip fell as much as 1.23% to Rs 1,515 apiece. It pared losses to trade 0.76% lower at Rs 0.45% apiece, as of 10:42 a.m. This compares to a flat NSE Nifty 50.

It has risen 25.52% in the last 12 months. Total traded volume so far in the day stood at 2.6 times its 30-day average. The relative strength index was at 50.9.

Out of 38 analysts tracking the company, 23 maintain a 'buy' rating, eight recommend a 'hold' and seven suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 6.6%.