'Consequent to the sale, upon execution of the transaction, Saba and its subsidiaries viz Cipla Middle East Pharmaceuticals FZ LLC, UAE (CME) and Cipla Medica Pharmaceutical and Chemical Industries, Yemen (Cipla Medica), will cease to be subsidiaries of the company,” Cipla announced in a statement.

CME had recorded revenue of $14.82 million while Cipla Medica's revenue was $9.65 million as on 31 March 2023. The networth of Saba, CME and Cipla Medica was $35.19 million, $2.59 million and $(3.05) million as on 31 March 2023.

Cipla has signed a binding term sheet for sale of stake held in Saba on 15 May 2023. The proposed sale is subject to signing of the definitive agreement and is expected to be completed within 120 days from the date of signing of the binding term sheet or upon satisfaction of closing conditions as agreed in the definitive agreement, whichever is earlier; or such other date as may be mutually agreed between the parties.

The sale has been executed for a consideration of $6.50 million.

Shibam Group Holding is a company incorporated under the laws of Ras Al Khaimah International Corporate Centre, UAE, primarily engaged in investment activities in commercial, industrial and real estate ventures. The buyer currently holds a stake of 49% in Saba.

Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets.

The pharma major's consolidated net profit jumped 45.18% to Rs 525.65 crore on 9.1% increase in total revenue from operations to Rs 5,739.30 crore in Q4 FY23 over Q4 FY22.

The scrip rose 0.82% to currently trade at Rs 930.35 on the BSE.