Cipla Block Deal News: Cipla promoters offload 1.72% stake via block deals at 6% discount

Shares of Cipla saw significant movement on Monday as the company’s promoters sold up to 1.72 pe  cent of their stake through block deals. The transaction, priced at Rs 1,442 per share, represented a 6 per cent discount to Friday's closing price of Rs 1,532. Multiple trades totalling 1.39 crore shares were executed in the pre-open session, contributing to the equity deals. This stake sale was part of the promoters’ strategy to raise funds for specific needs, including philanthropic activities.

The stake sale will likely involve around Rs 2,000 crore in total. The promoter group, which includes Shirin Hamied and her daughters, is already familiar with such sales, having sold a 2.53% stake in May 2024 for Rs 2,751 crore. Back then, the shares were offloaded at Rs 1,345 apiece, significantly below the current deal price, reflecting a rise in the stock's value since the last transaction.

The latest development follows strong financial results from the pharmaceutical giant. Cipla reported a 15 per cent year-on-year growth in consolidated net profit for the September 2024 quarter, reaching Rs 1,303 crore. This outperformed analysts’ expectations of Rs 1,218 crore. Revenue from operations grew by 6% to Rs 7,051 crore, while EBITDA rose by 12% to Rs 1,886 crore, indicating robust operational performance.

Cipla’s share price has surged 27 per cet  over the past year, outperforming the Nifty, which delivered 21 per cent  returns in the same period. This uptick highlights investor confidence in the company’s prospects, especially after a solid earnings report.

Investors should closely monitor Cipla’s stock this week as the block deal takes place and assess how market reactions unfold, particularly regarding the discount and the potential impact on the stock's short-term movement.