Novartis India Skyrockets as ChrysCapital Acquires Majority Stake

Novartis India's shares surged 20% following Novartis AG's decision to sell a 70.68% stake to ChrysCapital. This move triggers an open offer for public shareholders to tender up to 26% of shares. The transaction marks Novartis AG's exit from its Indian unit, with ChrysCapital taking control.

Shares of Novartis India saw a dramatic 20% rise, reaching the upper circuit limit, after its parent company, Novartis AG, agreed to sell a substantial stake to private equity firm ChrysCapital. The move signifies a major transition in the ownership of Novartis India, with its share price hitting Rs 996.50 on the BSE.

This transaction includes a Share Purchase Agreement (SPA) for 1.74 crore equity shares, representing 70.68% of the company, to be sold to WaveRise Investments Ltd, ChrysCapital Fund X, and Two Infinity Partners. Parallelly, an open offer will allow public shareholders to tender up to 26% of the equity.

The offer price has been set at Rs 860.64 per share, amounting to Rs 552.49 crore in total, subject to reevaluation as per SEBI's SAST regulations. The strategic exit of Switzerland-based Novartis AG leaves ChrysCapital poised to enhance its portfolio in the pharmaceutical sector, leveraging its stakes in companies like Intas Pharma and Eris Lifesciences.

(With inputs from agencies.)