Shares of Cipla Ltd. hit a record high on Friday on report that Blackstone Inc. may acquire the entire promoter stake in the pharmaceutical major.
The largest private equity firm in the world is planning to take over the entire 33.47% promoter stake in Cipla, the Economic Times reported on Friday, citing people in the know.
A non-binding agreement to this effect is likely to happen by next week, which could lead to the Hamied family exiting Cipla, a company they founded in 1935. It could also trigger an open offer for an additional 26% stake, according to the report.
Shares of Cipla rose 3.87% to Rs 1,211 apiece as of 12:18 p.m. after hitting a record high of Rs 1,238.7 on the NSE. The benchmark NSE Nifty 50 was up 0.77%, and the Nifty Pharma index was up 0.54%.
The stock has gained 12.59% year-to-date. The total traded volume stood at 6.4 times its 30-day average. The relative strength index was at 84, suggesting stocks may be overbought
Of the 41 analysts tracking Cipla, 30 maintain a 'buy' rating on the stock, eight suggest a 'hold', and three recommend a 'sell', according to Bloomberg. The average of 12-month analyst price targets implies a potential downside of 4.1%.
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