Cipla, leading drug maker, announced that the company has signed a definitive agreement with its existing Iranian distributor for setting up a manufacturing facility in Iran. The total contribution from the company over the next 3 years will include machinery, equipment, and technical know-how and is expected to be approximately Rs 2.25 billion for a 75% stake.

The proposed investment is subject to completion of certain conditions precedent and applicable regulatory approvals.

Shares of the company declined Rs 1.7, or 0.27%, to settle at Rs 624. The total volume of shares traded was 83,090 at the BSE (Wednesday).