Novartis to Sell 70.68% India Stake for ₹14.46B, Shares Jump 19.3%
Novartis will sell its 70.68% stake in Novartis India for 14.46 billion rupees ($159m) and issued an open offer at 860.84 rupees/share for up to 26%, valuing that tranche at 5.52 billion rupees. Shares jumped 19.3% to 996.50 rupees, while Hyderabad R&D and commercial units remain outside the deal.
1. Deal Details
Novartis has agreed to sell 70.68% of its India-listed unit to a consortium of WaveRise Investments, ChrysCapital Fund X and Two Infinity Partners for 14.46 billion rupees ($159 million). The transaction includes an open offer at 860.84 rupees per share to acquire up to 26% for 5.52 billion rupees.
2. Market Reaction
Shares of Novartis India surged as much as 19.3% to 996.50 rupees on announcement of the offer, trading above the open-offer price. The price gain underscores investor optimism about the unit’s prospects under new ownership.
3. Remaining Operations
The divestment excludes the wholly owned Novartis Healthcare Pvt. business based in Hyderabad, which manages commercial operations and R&D at over 300 clinical trial sites nationwide. That unit remains under full Novartis control, preserving the company’s research footprint in India.
4. Strategic Background
The sale concludes a strategic review of the listed arm launched in February 2024 and follows distribution agreements with domestic partners such as Dr. Reddy’s Laboratories. The divestment reshapes ownership while allowing Novartis to retain its broader India infrastructure.