Cipla To Invest ₹415 Crore in Arm Cipla Medpro South Africa

Cipla Ltd. has announced an investment of ZAR 900 million (approximately ₹415 crore) in its wholly owned subsidiary, Cipla Medpro South Africa Proprietary Ltd. The investment aims to strengthen the financial structure of Cipla Medpro by reducing inter-group debt and enhancing its capital framework.

Investment to Strengthen Cipla Medpro’s Financial Position

Cipla Ltd. stated in an exchange filing that the investment will be executed through cash consideration and is expected to be completed by 28 February 2025. The primary objective of the infusion is to optimise the capital structure of Cipla Medpro and its subsidiaries while reducing internal debt. Cipla Medpro plays a crucial role in the manufacturing, marketing, and supply of pharmaceutical products in South Africa, making this investment significant for its operational stability.

Cipla’s Strong Q3 Performance

Cipla Ltd. delivered an impressive financial performance in the third quarter of the current fiscal year, reporting a 49% year-on-year increase in consolidated net profit, amounting to ₹1,571 crore. The company’s revenue rose by 7.1% to ₹7,073 crore, while its EBITDA increased to ₹1,989 crore, with margins expanding to 28.1%. These results highlight Cipla’s strong financial position, reinforcing its ability to invest in its global operations.

Cipla Share Performance

As of February 04, 2025, at 12:40 PM, shares of Cipla are trading at ₹1,458.10 per share, reflecting a surge of 2.53% from the previous day’s closing price. Over the past month, the stock has registered a decline of 2.39%.

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