Shares of pharmaceutical giant Cipla rose on March 15 after the company announced plans to sell its 51.18% majority stake in its Ugandan subsidiary Cipla Quality Chemical Industries Limited (CQCIL) to Africa Capitalworks SSA.

With this stake sale (priced at $25-30 million), CQCIL will no longer be a subsidiary of Cipla.

CQCIL contributed 2.57% or $75.21 million of Cipla’s total consolidated revenue, with net assets of $44.08 million in FY22.

Shares of Cipla were trading at Rs 881.30 on the National Stock Exchange, up 1.06%, at 11:02 am. With gains in today’s session, the stock also snapped a three-day losing streak.

Shares of Cipla fell to a 52-week low on March 14 after CNBC-TV18 reported that the income tax department was investigating the company for possible violations and tax avoidance allegations.

According to the report, the tax department is investigating the pharmaceutical company’s allegations of improper claims under Section 80-IA totalling Rs 400 crore and improper deduction of R&D expenses totalling Rs 1,300 crore.

The income tax department investigated Cipla on January 30 to examine documents as part of an investigation into alleged tax evasion.

However, the company clarified in response to CNBC-TV18’s inquiries that no tax demands have been filed against them.