Shares of the Mumbai-listed Novartis India rallied sharply on Friday, rising roughly 20% and hitting the upper circuit limit at 996.5 rupees, after the Swiss parent agreed to divest its stake in the company in a deal valued at 14.46 billion rupees ($159 million).
Under a share purchase agreement, a consortium led by ChrysCapital affiliates - including WaveRise Investments and Two null Partners - will acquire 70.68% of Novartis India from Novartis AG. The buyers have agreed to pay up to 14.46 billion rupees for that controlling stake.
The filing shows the price allocation within the transaction: WaveRise will acquire the bulk of the stake at 860.64 rupees per share, while ChrysCapital-linked entities will buy smaller tranches at about 701.25 rupees per share.
As part of the deal mechanics, the acquirers will launch a mandatory open offer to purchase an additional 26% of Novartis India from public shareholders at 860.64 rupees per share. If public investors fully subscribe to that offer, the consortium's combined ownership could rise to about 96.7%.
Completion of the sale will result in control of the listed Indian company being transferred to the ChrysCapital-led group. Following closing, Novartis AG will no longer be a promoter and will exit ownership of the business entirely.
The company noted that the transaction remains subject to regulatory clearances and other conditions customary to such transactions.
Key points
- Novartis India shares jumped about 20%, reaching the upper circuit limit at 996.5 rupees.
- A ChrysCapital-led consortium, including WaveRise Investments and Two null Partners, agreed to buy 70.68% of Novartis India for up to 14.46 billion rupees ($159 million).
- The buyers will make a mandatory open offer for an additional 26% at 860.64 rupees per share, potentially increasing ownership to roughly 96.7% if fully subscribed.
Sectors affected - The transaction primarily impacts the pharmaceutical sector and Indian equity markets, with implications for listed mid-cap healthcare companies and private equity activity in the region.
Risks and uncertainties
- The deal is conditional on receiving required regulatory clearances - a failure or delay could affect completion and ownership transfer.
- The mandatory open offer may not be fully subscribed by public shareholders, which would change the ultimate holdings of the consortium.
- The sale includes other customary conditions noted by the company; unmet conditions could delay or prevent closing.
What this means
For investors and market participants, the announced deal represents a clear change in ownership for a Mumbai-listed pharmaceutical company and demonstrates private equity interest in regional healthcare assets. The immediate market reaction was a sharp share-price move, but the transaction’s completion depends on regulatory approvals and the outcome of the open offer.