Cipla Ltd. — Capital/Financing Update 2019

Jul 15, 2019

151 h July 2019

• {1) BSE Ltd Listing Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai ·· 400 001
• {2) National Stock Exchange of India Ltd Listing Department Exchange Plaza, 5^{1 h}floor, Plot no. C/1, G Block, Bandra Kurla Complex, Sandra {East), Mumbai- 400 051

Scrip Code: 500087

Scrip Code: CIPLA EQ

{3) SOCIETE DE LA BOURSE DE LUXEMBOURG Societe Anonyme 35A Boulevard Joseph II, L-1840 Luxembourg

Dear Sirs,

Sub: Disclosure under regulation 30 of SEBI {LODR) Regulations 2015.

This is to inform you that Cipla {EU) Limited ("Cipla EU"), U.K., a wholly owned subsidiary of Cipla limited ("Company"), has entered into a joint venture agreement with Jiangsu Acebright Pharmaceutical Co., Ltd. ("Acebright"), China on 151 h July 2019 for incorporation of a company {"JV Co.") in China.

The JV Co. will be in the business of manufacturing, selling and distribution of pharmaceutical products, research and development services, analytical development services with the purpose of providing high quality and affordable drugs.

As per the agreement, Cipla EU will hold 80% stake and Acebright will hold 20% stake in the JV Co. Cipla EU's investment in the JV Co. is estimated up to USD 24 million over a period of 4 years.

The JV Co. will become a related party upon incorporation and first tranche of investment; and any investments in JV Co. will be a related party transaction. None of the persons belonging to Promoter I Promoter Group of the Company has any interest in the transaction.

The transaction remains subject to conditions precedent and requisite regulatory approvals.

Thank you,

For Cipla Limited

R~ ^f

Company Secretary

Ends: Details as per the SEBI {listing Obligations and Disclosure Requirements) Regulations, 201.5

Prepared by: Gaurav Sainani

Annexure -I

Name of the target entity, details in brief such as size, turnover etc.;	The Joint Venture Company (JV Co.) is yet to be incorporated.
	Turnover -NIL.
Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest	The JV Co. will become a related party upon incorporation and first tranche of investment; and any investments in JV Co. will be a related party transaction. However, none of the persons belonging to Promoter I Promoter Group of the Company has any interest in the
same is done at "arm's length";	transaction.
acquired belongs;	Ph a rmaceutica I Industry Manufacturing, selling and - distribution of pharmaceutical products, research and development services, analytical development services.
Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition	To provide quality and affordable drugs, and to strengthen presence in China.
outside the main line of business of the listed entity);	Upon incorporation, the JV Co. will become a subsidiary of Cipla.
Brief details of any governmental or regulatory approvals required for the acquisition;	Investment and Incorporation of JV Co. will be subject to requisite regulatory approval(s) in China.
Indicative time-period for completion of the acquisition;	The investment would be made over a period of 4 years from the date of incorporation of JV Co.
Nature of consideration - whether cash consideration or share swap and details of the same;	Cash consideration.
Cost of acquisition or the price at which the shares are acquired	Cipla EU will invest upto USD 24 million over a period of 4 years from the date of incorporation of JV Co. for acquiring 80% stake.
Percentage of shareholding I control acquired and I or number of shares acquired	Upon incorporation of JV Co., Cipla EU will hold 80% stake on a fully diluted basis.
Brief background about the entity acquired in terms of products/line of of business acquired, date incorporation, history of last 3 years' turnover, country in which the acquired entity has presence and any other significant information (in	JV Co. to be incorporated in China and it will be in the business of manufacturing, selling and distributing of pharmaceutical products, research and development services, analytical development services. Turnover- NIL.
	and details thereof and whether the Industry to which the entity being of target entity, if its business is brief) ~.

Cipla Ltd. Regd. Office Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai- 400 013 Phone +91 22 24626000 Fax +91 22 24626120 E-mail contactus@cipla.com Website www.cipla.com Corporate Identity Number L24239MH1935PLC002360