Cipla shares fell 5% to Rs 910 on the BSE in intraday trade on Tuesday after more than 2% of the pharmaceutical company’s total stock changed hands in a block deal.

According to exchange statistics, about 20.7 million equity shares, or 2.57% of Cipla’s total equity, changed hands on the BSE at 09:15 a.m. The purchasers’ names could not be readily determined.

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Cipla was trading 4% down at Rs 918.25 at 09:21 a.m., compared to a 0.67% advance in the BSE Sensex. On September 29, 2021, the stock reached a 52-week high of Rs 1,005.

According to the company’s statement, Y K Hamied, Chairman, and MK Hamied, Vice Chairman, both non-executive directors and promoters, sold 2,01,69,756 shares, representing 2.5% of the company’s total issued and paid-up share capital.

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“Post this transaction, the promoter group will continue to hold 34.23 per cent in the company. The group remains fully committed and invested in the future of Cipla Limited. The senior promoters, who are both in their eighties, intend to use the funds generated from this sale for personal purposes, including philanthropy. The promoter group does not plan to sell any further shares in the foreseeable future,” the company added. 

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According to the shareholding pattern data, Yusuf Khwaja Hamied owned 20.43% of Cipla as of December 31, 2021, while Mustafa Khwaja Hamied owned 4.31%.

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According to a Times of India report, the sellers have the option to sell an additional 4.03 million shares (approximately 0.5% equity) if there is substantial demand from the prospective bidders, who are all institutional investors.