Cipla shares are expected to attract attention on Monday as the promoters of the company plan to sell their shares up to 1.72% in block deals. The move comes as part of promoters’ strategy to raise funds for specific needs, including philanthropic activities. The deal is expected to be valued at Rs 1,442 per share, representing a 6% discount to Friday’s closing price of Rs 1,532.
The stake sale will involve around Rs 2,000 crore in total. The promoter group, which includes Shirin Hamied and her daughters, is used to such sales, having sold a 2.53% stake in May 2024 for Rs 2,751 crore. Back then, the shares were priced at Rs 1,345 each, well below the current deal price, reflecting the stock’s uptick since the last trade.
The latest development follows strong financial results from the pharmaceutical giant. Cipla reported 15% year-on-year growth in consolidated revenue for the September 2024 quarter, to Rs 1,303 crore. This exceeded analysts’ expectations of $1,218 million. Income from operations grew by 6% to Rs 7,051 crore, while EBITDA increased by 12% to Rs 1,886 crore, reflecting strong performance.
Cipla’s share price has risen 27% in the past year, outperforming the Nifty, which has posted gains of 21% over the same period. The increase highlights investor confidence in the company’s prospects, especially after a strong earnings report.
Investors should closely monitor Cipla’s stock this week as the stock block deal takes place and assess how the market reacts, especially regarding the discount and the potential impact on the stock’s short-term movement.
