Torrent joins fray for Hamied family stake in Cipla, up against Blackstone and Baring PE

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Key Points

Torrent Pharma has joined the race to buy out the Hamied family's stake in Cipla, said people aware of the matter, in what could be the biggest pharma deal since 2014..

Sixth-ranked Torrent is aiming to take control of the fourth-ranked Indian drugmaker that's more than double (2.3x) its FY23 consolidated revenue, 2.3 times its profit and 1.46 times its present market value..

A transaction could eventually lead to the creation of India's second-biggest drugmaker after Sun Pharma by revenue...

Torrent, advised by JP Morgan, is looking to form a consortium with private equity funds and has had preliminary discussions with a few.. . Lenders tapped..

The Sudhir and Samir Mehta family own 71.25% of Torrent, among the highest promoter ownership in Indian pharma, and have the headroom to dilute equity to raise leverage, according to a person with knowledge of the matter...

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