Novartis India shares surge 13% as Swiss parent sells 71% stake to ChrysCapital-led consortium

Shares of Novartis India Limited surged 13% on Friday, February 20, after its promoter, Novartis AG, agreed to sell a majority stake in the company to a consortium of investors led by ChrysCapital.

In an exchange filing, Novartis India said Novartis AG has entered into a share purchase agreement (SPA) with WaveRise Investments Limited, ChrysCapital Fund X and Two Infinity Partners to sell 1.74 crore fully paid-up equity shares, representing 70.68% of the company’s paid-up equity share capital.

Upon completion of the transaction, Novartis AG will cease to be the promoter of the company, and the acquirers will assume control and be classified as the new promoters.

Additionally, the company said, Novartis India will change its name to remove all references to the Novartis group within 120 days of completion.

Earlier reports had indicated that homegrown private equity firm ChrysCapital was in advanced talks to acquire a majority stake in Novartis India from its Swiss parent after more than a year of negotiations.

A source had told Moneycontrol, “ChrysCapital has been the sole player in the fray for several months and is now gearing to pick up a controlling stake in Novartis India.”

As part of the transaction, Novartis India has executed a company covenant and warranty deed with the seller and the acquirers. Under the agreement, the company has provided certain customary warranties on a non-recourse basis and agreed to offer assistance and information in connection with the mandatory open offer that will be made to public shareholders under the SEBI regulations.

The company has also undertaken to conduct its business in the ordinary course until completion of the transaction and to complete necessary regulatory filings post-closing.

Following the announcement, shares of Novartis India opened in the green on Friday, gaining more than 13% in early trade. The stock was trading at ₹939 per share and has surged nearly 20% in the past month.