The Hindu Business Line : Cipla zooms on speculation of stake sale, buy plans

THE stock price of pharma company Cipla today shot up sharply on the back of market expectations regarding either an acquisition abroad or plans by the promoters to off-load equity to a multinational drug company.

According to brokers, the stock price gained on reports that Cipla was close to buying out Lab DB Pharma, a French company.

Meanwhile, an analyst tracking the company told Business Line that Cipla's promoters were planning to off-load equity to a multinational drug firm.

Israeli generic drug company Teva was named as one of the suitors tipped to pick up equity in Cipla.

According to the analyst, the buzz in the market gained currency since the generic drugs segment was seeing increased activity from branded pharma big-wigs.

Cipla's Joint Managing Director, Mr Amar Lulla, however, denied both the reports. No reason was given for the optimism that was fuelling the stock price.

Meanwhile, agency reports also quoted Cipla's Chairman and Managing Director, Dr Y.K. Hamied, currently in Spain, as saying: ``I don't even know why these rumours are spreading. I have not given any such comment.''

The Indian promoters hold about 41 per cent equity in the company.

The stock price of the company gained 8.4 per cent at Rs 295.50 on the BSE with volumes of 15.77 lakh shares and on the NSE, closed at Rs 295.45, up 8.44 per cent, with volume of 43.60 lakh shares.

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