Will Cipla set off a sale season?

An investment by a private equity firm or a consortium in the generics maker could set the benchmark for promoters of other pharma companies looking to sell their stake.

A fortnight ago, business channel CNBC TV18 reported that promoters of Mumbai-based Cipla Ltd are exploring a stake sale. When the news broke on 27 July, the stock rose 9.6% to Rs 1,171, and went on to a 52-week high of Rs 1,267.50 on Tuesday, representing a total gain of 17% in 10 trading sessions. 

The report said the promoters have engaged an investment banker to sell a part of their 33.47% stake and that private equity players like Blackstone and Baring Asia are amongst those evaluating the deal. 

Given private equity investors’ penchant for control, a consortium could take …


T Surendar

Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.

Executive Editor