Novartis to sell 70.68% stake in Novartis India for 14.46 billion rupees
Novartis agreed to sell its 70.68% stake in Novartis India Ltd. for 14.46 billion rupees. The buyers also launched a 26% open offer at 860.84 rupees per share.
Novartis has agreed to divest its 70.68% stake in Novartis India Ltd. to a consortium of WaveRise Investments, ChrysCapital Fund X and Two Infinity Partners for 14.46 billion rupees, or about $159 million. The deal brings to a close the strategic review announced in February 2024 and sets a defined path forward for the listed Indian arm under new majority ownership.
As part of the transaction framework, the acquiring consortium has also launched an open offer to purchase up to 26% of Novartis India at 860.84 rupees per share, valuing that offer at approximately 5.52 billion rupees. Novartis India shares rose as much as 19.3% to 996.50 rupees in Mumbai trading, trading above the open-offer price.
The strategic review did not include Novartis Healthcare Pvt., the wholly owned unit that houses the Hyderabad corporate center, manages commercial operations and oversees research and development teams conducting clinical trials at more than 300 sites nationwide. Before the review began, Novartis India had entered distribution agreements with domestic partners, including a pact with Dr. Reddy's Laboratories Ltd. to market brands such as Voveran, Calcium ranges and Methergine in India.
Novartis India markets prescription drugs, generic and over-the-counter medicines. The divestment reshapes the ownership of the listed unit while leaving Novartis' broader India infrastructure and R&D footprint intact.