Cipla slips 5% as 2.5% equity changes hands on the BSE

According to the disclosure made by the company, Y K Hamied, Chairman, and MK Hamied, Vice Chairman, sold 2,01,69,756 shares, representing 2.5 per cent of the total capital

Shares of Cipla slipped 5 per cent to Rs 910 on the BSE in Tuesday's intra-day trade after more than 2 per cent of the total equity of the pharmaceutical company changed hands via block deal.

At 09:15 am, around 20.7 million equity shares, representing 2.57 per cent of total equity of Cipla, changed hands on the BSE, the exchange data showed. The name of the buyers could not be ascertained immediately.

At 09:21 am, Cipla traded 4 per cent lower at Rs 918.25, as compared to 0.67 per cent rise in the S&P BSE Sensex. The stock had hit a 52-week high of Rs 1,005 on September 29, 2021.

According to the disclosure made by the company, Y K Hamied, Chairman, and MK Hamied, Vice Chairman, who are also Non-Executive Directors and promoters, sold 2,01,69,756 shares, representing 2.5 per cent of the total issued and paid-up share capital of the Company.

"Post this transaction, the promoter group will continue to hold 34.23 per cent in the company. The group remains fully committed and invested in the future of Cipla Limited. The senior promoters, who are both in their eighties, intend to use the funds generated from this sale for personal purposes including philanthropy. The promoter group does not plan to sell any further shares in the foreseeable future," the company added. READ HERE

As on December 31, 2021, Yusuf Khwaja Hamied held 20.43 per cent stake, while Mustafa Khwaja Hamied held 4.31 per cent holding in Cipla, the shareholding pattern data showed. 

The sellers also have the option to offload another 4.03 million shares (about 0.5 per cent equity); in case there are strong demands from the prospective buyers, who are all institutional investors, a Times of India report suggested.