Novartis AG to Exit India Arm in Rs 1,446 Cr Deal, ChrysCapital-Led Consortium Buys 70.68% Stake
Mumbai: Novartis AG, the Swiss parent company, is selling its entire 70.68% stake in Novartis India Limited to a consortium led by ChrysCapital, WaveRise Investments Limited, and Two Infinity Partners for approximately Rs 1,446 crore (around USD 159 million), marking the Swiss drugmaker's complete exit from its India-listed unit.
The transaction is being executed through a Share Purchase Agreement (SPA) under which the consortium will acquire 1,74,50,680 equity shares representing 70.68% of the paid-up equity share capital of Novartis India from Novartis AG.
Pursuant to the stake acquisition, the acquirers have announced a mandatory open offer to purchase up to 26% additional equity shares from public shareholders at Rs 860.64 per share, in compliance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The total consideration for the open offer, assuming full acceptance, stands at approximately Rs 552 crore. The offer price represents a significant premium over historical trading levels and triggered a sharp rally in the company’s stock following the announcement.
Under the agreement, WaveRise Investments Limited will acquire 56.45% stake at Rs 860.64 per share (offshore component), ChrysCapital Fund X will acquire 10.32% and Two Infinity Partners will acquire 3.91%.
Post completion, the consortium will assume control of Novartis India and will be classified as promoters under applicable SEBI regulations. Novartis AG will cease to be a promoter and will fully exit the company.
The board of Novartis India is expected to be reconstituted following completion of the transaction, with nominee directors of the acquirers joining and existing Novartis AG nominees stepping down.
The divestment aligns with Novartis AG’s global strategy of focusing on innovative, high-margin medicines and consolidating its international operations. The Swiss major has been progressively restructuring its portfolio worldwide to sharpen focus on core therapeutic areas.
Novartis India Limited has historically functioned as the India-listed arm of the global pharmaceutical major, primarily engaged in branded formulations.
The acquirers have clarified that there is no intention to delist Novartis India pursuant to the open offer. They have also committed to complying with minimum public shareholding norms under securities market regulations.
The transaction remains subject to customary closing conditions and regulatory compliances.
