Cipla in advanced talks with 2 groups

Promoters in talks with consortiums led by Torrent and Baring

- Anirudh Laskar, Sneha Shah

Cipla Ltd's promoters are in advanced talks with two consortiums-one Pharmaceuticals led by Torrent Ltd, with the participation of prominent family offices, and the other a group of buyout firms led by BPEA EQT and General Atlantic-to sell a controlling stake in India's fourth-largest drugmaker for $6-7 billion, two people with direct knowledge of the matter said.

The consortium led by Torrent Pharma is backed by its promoters, the Mehta family, alongside investments from entities linked to Dilip Shanghvi-led Sun Pharmaceutical Industries Ltd and the Patel family-owned Zydus Lifesciences Ltd.

A successful bid by Torrent Pharma would propel the company into the second-biggest Indian drugmaker after Sun Pharma.

Cipla's promoter group, led by its founder's son Yusuf K. Hamied, 87, is seeking a valuation of at least 33,000 crore for its 33.47% stake and will only cede control if binding bids value the drugmaker at 1 trillion, according to one of the two people.

"The latest discussions with Cipla promoters' bankers regarding valuations and the premium to market price happened on Friday," said the first person, who added that Cipla's promoters want a price of a little over 1,200 per share. Cipla's shares ended trading at ₹1,180.50 on Wednesday, valuing the company at 295,300 crore.