Although Lupin chairman Deshbandhu Gupta, speaking to reporters after the AGM, confirmed that the deal was struck, the company later issued a statement denying the same.

"I would like to state that while we are in discussions with the Piramals for the above-mentioned property, the deal is not yet been finalised. The two groups are still in discussion on various aspects of the deal and a number of issues need to be clarified/tied up after which, if at all, the deal could be concluded," says the statement signed by Gupta.

Gupta had said that the funds inflow would be utilised to pay off part of the company's debts so as to bring down the interest liability. During 1998-99, Lupin's interest liability stood at Rs 51.58 crore, which was around 10 per cent higher than the previous fiscal.