Cipla promoter group sells 2.53% stake; stock jumps 5%

Pharma major Cipla Ltd on Wednesday issued a clarification regarding stake sale by one of its promoter group entities. "We here hereby submit the following clarification with respect to sale of 2,04,50,375 shares by certain members of the promoter group today, i.e. May 15, 2024. Shirin Hamied, Rumana Hamied, Samina Hamied and Okasa Pharma Private Limited (all categorised as promoter group) have sold 2.53 per cent shares of Cipla for the purpose of creating liquidity for specific needs including philanthropy," the company stated in an exchange filing.

"Post transaction, the entire promoter group (including person acting in concert) continues to hold 31.67 per cent in the company and remains committed to the future of Cipla," it added.

Price range of the stake sale and buyer details are not yet announced by Cipla.

On the earnings front, the firm reported a 78 per cent rise in consolidated net profit for the March 2024 quarter. Q4 FY24 profit climbed to Rs 939 crore as against Rs 525.6 crore in Q4 FY23. Consolidated revenue from operation rose 4 per cent to Rs 6,082 crore compared to Rs 5,793.3 crore in the corresponding period a year ago.

Cipla has also recommended the payment of a final dividend of Rs 13 per equity share for the financial year 2024 (FY24).

Shares of Cipla rose sharply in today's trading session. The stock surged 5.21 per cent to hit a day high of Rs 1,427.70 over its previous close of Rs 1,356.95.

"The value size of the company's new launches is going to be huge. Investors should consider taking positions with a long-term view. Those already holding the stock should continue with their bets," Gaurang Shah, Senior VP at Geojit Financial told Business Today TV.

"The stock is giving a very strong sign. We are of the view that the recent bottom formed at Rs 1,317 will not be broken. It will sooner or later comeback and one can consider entering at lower levels," said Mitesh Panchal, a Sebi-registered analyst.

Turnover on the counter came at Rs 36.27 crore, commanding a market capitalisation (m-cap) of Rs 1,13,600.47 crore.