Cipla to acquire 32.49% stake in AMP Energy Green Eleven for Rs 7.50 cr

Cipla entered into share subscription & shareholder's agreement (SSHA) along with a power purchase agreement to acquire up to 32.49% stake on a fully diluted basis in AMP Energy Green Eleven, for setting up captive solar power project in Maharashtra.

In a bid to enhance the share of renewable power source in its operation and to comply with regulatory requirement for being a captive user under Indian electricity laws, Cipla will acquire up to 32.49% stake on fully diluted basis in AMP Energy Green Eleven for a total cash consideration of Rs 7.50 crore, throughout the term of the transaction documents.

Post-acquisition, AMP Energy Green Eleven, will become an associate of Cipla. AMP Energy Green Eleven, currently a wholly owned subsidiary of AMP Energy C&I, is a Special Purpose Vehicle (SPV) formed for purpose of setting up captive solar power project in Maharashtra.

In a separate exchange filing, Cipla announced that Kedar Upadhye on 4 February 2022, resigned from the position of global Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) of the company to pursue his professional aspirations beyond pharmaceutical/ healthcare sector.

Mr Upadhye will serve his full notice period of three months i.e. upto close of business hours of 3 May 2022 and will continue in his current role as global CFO and KMP until relieved. The board will announce the successor in due course.

Cipla reported a 2.6% decline in consolidated net profit to Rs 729 crore in Q3 FY22 from Rs 748 crore posted in Q3 FY21. The drug maker's total revenue from operations grew by 6% year on year to Rs 5,479 crore in Q3 FY22 over Q3 FY21.

Shares of Cipla shed 1.31% to Rs 933.55 on BSE. Cipla is a global pharmaceutical company focused in India, South Africa, North America, and key regulated and emerging markets. Its strengths lies in the respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments.