In what could be a significant change in the pharma sector in India, Ahmedabad-based Torrent Pharma is likely to enter the race to acquire the Hamied family's stake in Cipla, a report stated.

With this, Torrent Pharma will directly compete with bigwigs like Blackstone and Baring Private Equity Asia-EQT. Torrent has hired JP Morgan to work on the deal, said sources.

Earlier it was reported that company promoters are in talks with some major PE firms and have hired an investment bank to advise it on the deal with prospective buyers -- Blackstone, Baring Asia, among others. But the company had issued a clarification denying the development. At present, the promoters of Cipla, Hamied family, own a 33.47 per cent stake in the company.

A successful deal will take Torrent Pharma to the second-largest company by revenues in India. In domestic formulation business, it will overtake market leader Sun Pharma. Cipla's revenue in financial year 2023 is more than double that of Torrent Pharma.