Torrent Pharma is preparing to acquire Cipla’s promoters and pursue PE funding.

This move by Torrent comes at a time when two rival bidders, Blackstone and Baring Private Equity Asia-EQT (BPEA-EQT), previously considered frontrunners, have temporarily paused their pursuit of Cipla. This is in response to a 22 per cent increase in Cipla’s shares since July 15 according to the reports published in business-standard.com.

Cipla’s promoters, led by the Hamied family and YK Hamied, hold a 33.47 per cent stake in the company. As of now, Cipla’s market value stands at Rs 1.01 trillion. At this valuation, the promoter’s stake alone is worth Rs 33,700 crore (approximately $4.07 billion). If the open offer for an additional 26 per cent stake, as required under takeover rules, is fully subscribed, Torrent Pharma might pay a total of Rs 60,000 crore (around $7.2 billion) for a 59.47 per cent stake in the 88-year-old pharmaceutical company. This would surpass Sun Pharma’s $4 billion acquisition of Ranbaxy from Daiichi Sankyo in 2014.