Cipla Ltd. — Capital/Financing Update 2020

Aug 20, 2020

August 20, 2020

(1) BSE Ltd (2) National Stock Exchange of India Ltd Listing Department Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 5[th] floor, Dalal Street, Plot no. C/1, G Block, Mumbai - 400 001 Bandra Kurla Complex, Bandra (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

Sub- Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), 2015

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“ Listing Regulations” ), we hereby notify that the Company's subsidiaries have signed following agreements:

1. “Business Transfer Agreement” between Quality Chemicals Limited, Uganda, (“ QCL ”) and Cipla Quality Chemical Industries Limited, Uganda, (“ CQCIL ”), step-down subsidiaries of the Company, to sell Human Healthcare business of QCL to CQCIL, at a consideration of USD 1,271,747.

2. “Share Sale and Purchase Agreement” between Company’s wholly owned subsidiary Cipla (EU) Limited, United Kingdom, QCL, Mr. Emmanuel Katangole, Mr. Fredrick Mutebi Kitaka and Mr. George Baguma to sell entire stake aggregating to 51% of the total paid-up equity share capital in QCL , held by Cipla (EU) Limited to Mr. Emmanuel Katangole, Mr. Fredrick Mutebi Kitaka and Mr. George Baguma for a total consideration of USD 344,239 . Subsequent to the sale, QCL will cease to be a subsidiary of the Company.

A detailed disclosure as required under the Listing Regulations is enclosed as Annexure- I.

Thank you,

For Cipla Limited

Digitally signed by RAJENDRA CHOPRA DN: c=IN, o=Personal, RAJENDR 2.5.4.20=4987ad48c3965cfde78c8ea69e6f40ac91535876f12ba1fa5ba45cc5cc8db6c b, postalCode=122001, st=HARYANA, serialNumber=0be85c0408d0e3afd66366 A CHOPRA 9f5314248a72fdcdf34d01d48d472d7cf9262696f6, cn=RAJENDRA CHOPRA Date: 2020.08.20 23:22:09 +05'30'

_________________________

Rajendra Chopra Company Secretary

Enclosed:

1. Details as per the Listing Regulations:

Annexure - I

Sale of equity stake in Quality Chemicals Limited

Sr.No.	Particulars	Details
a)	The amount and percentage of theturnover or revenue or income andnet worth contributed by suchsubsidiary of the Company duringthe last financial year	As on March 31, 2020Total income is UGX 16,168,445,733 = 0.18% of CiplaLimited’s consolidated turnoverTotal Net worth is UGX 4,12,80,29,770 = 0.05% of CiplaLimited’s consolidated Net worth
b)	Date on which the agreement forsale has been entered into	August 20, 2020
c)	The expected date of completionof sale/disposal	August 30, 2020
d)	Consideration received from suchsale/disposal;	USD 344,239(USD 114 746 each from Mr. Emmanuel Katongole, Mr.Fredrick Mutebi Kitaka and Mr. George Baguma)
e)	Brief details of buyers and whetherany of the buyers belong to thepromoter/ promoter group /groupcompanies. If yes, details thereof	Mr. Emmanuel KatongoleMr. Katongole is a founding Director and shareholder of QCL.When QCL partnered with Cipla to form CQCIL, Mr Katongolewas appointed as the Executive Chairman of the CQCILboard.Mr. Frederick Mutebi KitakaMr. Kitaka is a founding Director and shareholder of QCL. Heserved as Head of Finance at QCL from 1997 – 2005 and ChiefFinance Officer at CQCIL from 2005-2014.Mr. George BagumaMr. Baguma is a founding Director and shareholder of QCLand he served as the founding Chief Commercial Officer atCQCIL from 2000 to 2005.The Buyers do not belong to the promoter/promotergroup/groupcompanies.
f)	Whether the transaction would fallwithin related party transactions?If yes, whether the same is done at“arm’s length”	No
g)	Additionally, in case of a slumpsale,indicativedisclosuresprovidedforamalgamation/merger, shall bedisclosed by the Company withrespect to such slumpsale	Not Applicable