Cipla Limited has announced a postal ballot seeking shareholder approval for key leadership appointments, including the appointment of Mr Achin Gupta as Managing Director and Global Chief Executive Officer effective 1st April, 2026.

Key Resolutions for Shareholder Approval

The postal ballot notice dated 23rd February, 2026 includes four resolutions requiring member approval:

Executive Compensation Structure

The proposed remuneration package for Mr Achin Gupta includes comprehensive compensation components:

Fixed Compensation

Stock-Based Compensation

Mr Gupta will be eligible for stock options and stock appreciation rights with specific value limits:

• First Year: Up to INR 7.00 crore
• Subsequent Years: Up to INR 20.00 crore annually
• Total Five-Year Cap: INR 60.00 crore

The stock-based benefits will be allocated in a 45:55 ratio between stock options and stock appreciation rights under the company's existing employee schemes.

Leadership Background and Experience

Mr Achin Gupta brings extensive pharmaceutical industry experience to the role. He holds an M.Tech degree in Biochemical Engineering and Biotechnology from IIT Delhi and an MBA from IIM Ahmedabad. Currently serving as Global Chief Operating Officer since 1st February, 2025, he previously led Cipla's One India Business as CEO from 2021.

Under his leadership of the India business, Cipla achieved strong profitability with market-leading revenue growth and consolidated its number one position in volume market share across the India pharmaceutical market, according to IQVIA TSA data. He was recognized as India Pharma CEO of the year at the Economic Times RE Pharma Summit, 2025.

Voting Timeline and Process

Shareholders can participate in the decision-making process through remote e-voting:

The notice is being sent electronically to members whose email addresses are registered with the company or depositories as of the cut-off date.

Independent Director Re-appointment

The ballot also seeks approval for re-appointing Mr Prathivadibhayankara Rajagopalan Ramesh as Independent Director for a second five-year term from 1st July, 2026 to 30th June, 2031. As Mr Ramesh will attain 75 years of age during this term, special resolution approval is required under SEBI regulations.

Mr Ramesh, a Fellow Member of ICAI with over 40 years of professional experience, previously served as Director of Deloitte & Touche and has been associated with various regulatory and industry bodies including SEBI committees and the Bombay Chamber of Commerce.

Severance and Termination Provisions

The employment agreement includes comprehensive severance provisions. In case of termination without cause or due to change in control, Mr Gupta would be entitled to:

• Within 24 months: 12 months fixed pay plus variable bonus
• After 24 months: Six months fixed pay or remainder term (whichever is lower) plus variable bonus
• Additional compensation: Up to INR 20,00,00,000 considering unvested stock benefits

The appointment requires approval through ordinary resolutions for the directorship and remuneration matters, while the independent director re-appointment requires a special resolution. The company has appointed BNP & Associates as scrutinizer for the e-voting process.

Cipla Limited has received an Official Action Indicated (OAI) classification from the US Food and Drug Administration (USFDA) for its subsidiary manufacturing facility in Greece. The pharmaceutical company disclosed this regulatory development to stock exchanges on 21st February, 2026.

USFDA Inspection Classification

The USFDA has classified the current Good Manufacturing Practices (cGMP) inspection at the Rodopi, Greece manufacturing facility of Pharmathen International S.A. as Official Action Indicated. This classification indicates that the regulatory authority has identified significant issues during its inspection that require corrective action.

Subsidiary Operations

Pharmathen International S.A. operates as a subsidiary facility that supplies Lanreotide Injection to Cipla USA Inc., which is a wholly owned subsidiary of Cipla Limited. The Greece-based facility plays a crucial role in the company's supply chain for this pharmaceutical product in the US market.

Regulatory Communication Timeline

This update represents a continuation of ongoing regulatory communications. Cipla had previously informed exchanges about developments related to this facility through intimations dated 7th and 14th January, 2026. The company has maintained transparency with stakeholders regarding the inspection process and its outcomes.

Official Disclosure

The information was formally communicated to multiple stock exchanges including BSE Limited, National Stock Exchange of India Limited, and Societe de la Bourse de Luxembourg. Company Secretary Rajendra Chopra signed the official communication, ensuring compliance with regulatory disclosure requirements under Regulation 30.