Cipla Stake Sale in Jeopardy Over $13 Billion Valuation Target

The sale of a stake in Cipla Ltd.is in jeopardy as potential buyers have balked at the 1.09 trillion rupee ($13.1 billion) valuation members of the founding family are targeting for the Indian firm in a deal, according to people familiar with the matter.

Negotiations between the family members and prospective buyers, including companies in the industry and private equity firms, are no longer moving forward, as the founders are demanding about 1,350 rupees per share, the people said. The price represents a premium of about 10% over Wednesday’s close, according to Bloomberg calculations.

Yusuf Hamied

Photographer: Adeel Halim/Bloomberg

The family shareholder group, ...