Swiss pharmaceutical firm Novartis opens a new tab and intends to sell its 70.68 percent stake in its listed Indian unit, opens new tab, to a private equity-based consortium that consists of approximately $159 million, as part of a global restructure.
The consortium, which will include WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners, will purchase the stake in Novartis India under a share purchase agreement.
The group has also issued a mandatory open offer to purchase an extra 26 percent of the firm at 860.64 rupees per share, an upsurge of 3.6 percent premium on its closing price on Thursday.
Novartis India shares shot up almost 20 percent to 996.5 rupees on Friday. The move to exit follows two years of strategic examination of Novartis India by the company, which also involved an evaluation of its stake in the Mumbai-based company.
Novartis revealed its intention to invest $23 billion to construct and grow in the U.S. in April 2025, as it was once again threatened by the Trump administration to impose drug import duties on pharmaceuticals.
Therefore, the Swiss company does not have a manufacturing presence in India. Novartis India mainly sells medicines, such as Voveran, which is used in joint pain relief.
A consortium of private-equity firms headed by WaveRise Investments is ready to acquire nearly 71 percent stake in the Indian unit of Swiss pharmaceutical giant Novartis AG.
The acquisition represents the complete departure of Novartis from its Indian subsidiary. It will hand over the company to the consortium that also involves ChrysCapital Fund X and Two Infinity Partners.
The buyout results in the mandatory open offer as per the Indian securities law to purchase up to 26 percent of stock in the hands of the public at 860.84 rupees a share. The filing reported that the offer would add approximately INR 5.52 billion to the consortium in case it is accepted in full.
Novartis announced in February 2024 that it was initiating a strategic review of its listed entity in India, including an evaluation of its shareholding in the company.
Novartis at the time stated that the review would not impact Novartis Healthcare, its commercial division in India. Novartis Healthcare also incorporates the Novartis Corporate Center in Hyderabad. Novartis India’s stock rose 16 percent at the outset of trading on Friday.
