Cipla rose 1.18% to Rs 563.90 at 10:51 IST on BSE after the company said its wholly owned subsidiary approved the acquisition of two manufacturing undertakings.
The announcement was made after market hours on Friday, 5 September 2014.
Meanwhile, the S&P BSE Sensex was up 194.42 points or 0.72% at 27,221.12.
On BSE, so far 53,000 shares were traded in the counter as against average daily volume of 2.79 lakh shares in the past two weeks.
The stock hit a high of Rs 565.40 and a low of Rs 559 so far during the day.
Cipla said that the company's wholly owned subsidiary Medispray Laboratories at its board meeting held on 5 September 2014 approved the acquisition of two manufacturing undertakings. The consideration for the above two transactions are Rs 29 crore and Rs 71.93 crore respectively. The first manufacturing facility located at Goa is owned by Okasa and the second manufacturing facility located at Satara (Maharashtra) is owned by Okasa Pharma. Entities controlled by relatives of the promoters hold majority interest in the companies which own the aforesaid undertakings, Cipla said.
A significant portion of the capacities of the two undertakings are dedicated for the manufacture of Cipla's products. Acquisition of the aforesaid undertakings is expected to yield operational synergies, Cipla said.
Cipla's consolidated net profit declined 39.3% to Rs 294.58 crore on 13.6% growth in net sales to Rs 2647.20 crore in Q1 June 2014 over Q1 June 2013.
Cipla is a global pharmaceutical company. Its portfolio includes 2000 products in 65 therapeutic categories with one quality standard globally.
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