The sale of a stake in Cipla Limited (NSEI:CIPLA) is in jeopardy as potential buyers have balked at the INR 1.09 trillion ($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 INR 1,350 per share, the people said. The price represents a premium of about 10% over September 13, 2023?s close, according to Bloomberg calculations.

The family shareholder group, known in India as the promoter group, controls around 33% of Cipla's shares, which are worth nearly $4 billion at September 13, 2023?s closing price. Cipla shares have climbed about 16% since CNBC-TV18 reported on July 27 the Hamied family was likely to sell part of their stake. The family members could sell some or all of their respective stakes in Cipla, the people said, asking not to be identified as the information isn't public.

Deliberations are ongoing and no final decision has been made on the deal, the people said. The family members can still revise the asking price lower or decide not to proceed with the sale, according to the people. A spokesperson for the firm didn't respond to requests for comment.