Swiss pharma major Novartis AG said that it has agreed to divest its entire 70.68% stake in listed subsidiary Novartis India for around Rs 1,446 crore to a consortium led by private equity firm ChrysCapital. The company is expecting the deal to close by the third quarter of 2026, subject to the satisfaction of certain conditions.
Financial Implications
“This divestment follows a strategic review announced and conducted by Novartis AG starting February 2024. Upon completion of this transfer of shares, Novartis will complete its transformation into a pure-play innovative medicines company and continues to adapt its footprint for efficient, sustainable long-term growth aligned with its global strategy,” the company statement said.
On Friday, the stock price of Novartis India jumped 20% to close at Rs 996.50 apiece on BSE. Following the execution of deal, the consortium will be required to make a mandatory open offer to acquire up to 26% of the voting share capital from public shareholders, as per the SEBI norms. The open offer price has been fixed at Rs 860.64 per share, which represents a 13.6% discount on Friday’s closing price.
With its presence across key chronic therapies like cardiology, neurology and diabetes, Novartis India’s new branding would determine its positioning in the market. In the third quarter of FY26, the company recorded a sequential decline in profitability with net profits falling 33.6% quarter-on-quarter to Rs 16.09 crore. Revenues too fell by 5.1%.
Post the deal, the ChrysCapital-led consortium will have a combined shareholding of 96.68% in Novartis India. In case no shares are tendered, their holding will remain at 70.68%.
The consortium, which includes WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners along with persons acting in concert – ChrysCapital X, LLC, and OceanEdge Investments, has clarified that it doesn’t intend to delist the company, and it will ensure compliance with minimum public shareholding requirements.
As part of the deal, Novartis India will change its name within 120 days from the deal completion to remove all references to the Novartis group. This is the first majority stake purchase by ChrysCapital in India. Its current portfolio in pharma and healthcare space include Intas Pharmaceuticals, Corona Remedies, Eris Lifesciences, KIMS Hospital, HealthKart, and Centre for Sight.
Continued Presence in India
Separately, Novartis Group has said it will continue to have India presence through Novartis Healthcare (NHPL), a wholly owned subsidiary of the Novartis group in India. “NHPL includes the commercial arm of Novartis in India, the Novartis Corporate Center in Hyderabad, and R&D teams, which currently conduct clinical trials at more than 300 trial sites in the country. Aligned with our global strategy, we are expanding our innovative Cardio Renal Metabolic and Oncology portfolio, marked by recent launches and a strong pipeline of innovative medicines for India,” the official statement said.