Cipla Promoters To Exit Via Rs 2,000 Crore Block Deal
The Cipla block deal, managed by Kotak Securities, sees promoters exiting their stakes at a 6% discount to the previous closing price, marking a pivotal moment for the pharmaceutical giant.
Cipla Ltd. promoters Samina Hamied and Rumana Hamied will exit the pharmaceutical company and offload stakes worth Rs 2,004 crore through a block deal on Monday. The equity shares will be sold at Rs 1,442 per share, according to the term sheet viewed by NDTV Profit.
The floor price is at a discount of 6% from Friday's closing price of Rs 1,533.90 per share, according to the term sheet. The promoters are going to sell 1.39 crore shares, representing 1.72% in the company.
Kotak Securities Ltd. will be the sole bookrunner for the bulk deal.
Samina Hamied, as of September 2024, held a 1.11% stake, whereas Rumana Hamied held a 0.16% stake in Cipla.
Cipla's Q2 Performance
Cipla's consolidated net profit rose 13% to Rs 1,305.01 crore in the second quarter of the current financial year, compared to Rs 1,155.37 crore in the same quarter of the previous fiscal year.
Revenue increased by 5.6% year-on-year for the three months ended September, reaching Rs 7,051.02 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 9% year-on-year to Rs 1,885.59 crore. The Ebitda margin expanded by 70 basis points to 26.7% from 26% in the same period the previous year.
The branded prescription segment saw slower growth this quarter, largely due to weaker market growth in anti-infectives, Cipla's key therapy area, which grew by 4.9% compared to over 12% in the previous year.
The consumer health segment registered a 21% year-on-year growth, with flagship brands Nicotex, Omnigel, and Cipladine sustaining their leadership in their respective categories.
Cipla stock rose as much as 3.68% during the day to Rs 1,547.70 apiece on the NSE. The stock closed 2.76% higher at Rs 1,533 per share. This compares with a % advance/decline in the benchmark Nifty 50. It has risen 27.66% in the last 12 months and 22.61% year-to-date.
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 consensus price target implies an upside of 28.7%.
