Torrent Pharma share price sank almost 4% in trade on Friday, falling for the third consecutive session, as reports suggested that the sixth large pharmaceutical player in India was likely to acquire the Hamied family’s stake in Cipla. Shares of the company touched an intraday low of Rs 1,772.05 apiece. The share price of Cipla sank around 1% to hit a low of Rs 1,244.70.
According to the ET NOW report, Torrent Pharma’s promoters are considering placing a bid for Cipla along with a consortium of private equity firms. Additionally, the reports suggested that Torrent Pharma has secured funding from international entities for this purpose. If the Cipla stake acquisition goes through, it might lead to an open offer with a potential transaction value between $6.5-7 billion.
In July, reports emerged that Cipla’s promoters were exploring a stake sale with PE firms such as Blackstone and BPEA EQT. YK Hamied, Chairman and MK Hamied, Vice Chairman are over 80 years old and lack a clear succession plan.
After the BSE sought clarification on the news report, Torrent Pharma refused to comment on the claims. In a filing with the exchanges, Torrent Pharma said, “The Company has noted that the news item refers to a potential sale of shares by its promoters pertaining to their involvement in the acquisition of Cipla’s shares. As a policy, the Company does not comment on speculative reports in the absence of verified data.”