Novartis AG Sells 70.68% Stake in India Unit to ChrysCapital for Rs 1,446 Crore

Swiss pharmaceutical major Novartis AG has signed a definitive agreement to sell its majority 70.68% stake in Novartis India to private equity firm ChrysCapital, marking a significant ownership change in the listed Indian entity. The deal will see 1.74 crore shares change hands for Rs 1,445.8 crore ($159 million), effectively transferring control of the company from the Swiss parent to entities affiliated with ChrysCapital.

The transaction involves three acquirers: WaveRise Investments Limited, ChrysCapital Fund X, and Two Infinity Partners. Under the agreed structure, one acquirer will buy 56.45% of the company at Rs 860.64 per share, while the remaining 14.23% will be acquired at Rs 701.25 per share by the other two entities. The Rs 860.64 per share price represents a 3.6% premium to the closing price on Thursday.

In line with SEBI's takeover regulations, the acquirers will launch a mandatory open offer to public shareholders at Rs 860.64 per share to acquire an additional 26% stake. Assuming full acceptance under the open offer, the total consideration payable shall be Rs 552.5 crore. The open offer will be managed by Axis Capital.

Shares of Novartis India jumped nearly 20% to Rs 996.50 during morning trading on Friday, surging by more than 17 percent in early trade after the announcement. At current levels, the company's market capitalisation stands at around Rs 2,375 crore. The stock has gained 16.5 percent over the past one year.

Following completion of the transaction, ChrysCapital will gain the right to nominate directors to the board, formalising its control over the company. The agreement also indicates that the company's name may be changed after the deal closes, subject to regulatory approvals. The Novartis brand name is expected to be phased out within 120 days of completion.

If the entire 26% shareholding is tendered through the open offer, WaveRise will own 72.78% of equity, ChrysCapital Fund X will own 17.33%, while Two Infinity Partners will end up owning 6.57% stake. In case no shares are tendered under the open offer, then WaveRise will have a majority 56.45% stake, ChrysCapital's fund will own 10.32% equity, while Two Infinity Partners will have 3.91% stake in the company.

The decision follows a "strategic review" of Novartis India initiated by Novartis AG in early 2024. The transaction comes close to three decades after Novartis India Ltd. was formally registered in October 1997. Novartis's presence in India dates back to 1947, and it operates in the country via two entities: Novartis Healthcare Pvt Ltd and the Mumbai-listed Novartis India Ltd.

Novartis India markets products across diabetes, neurology, cardiology and dermatology, with Voveran among its well-known brands. The company primarily sells medicines, including Voveran, used to treat joint pain. For FY25, the company reported revenue of Rs 356.27 crore and net profit of Rs 100.90 crore. Novartis India has a dividend yield of 2.61 percent and trades at a TTM PE of 24.33.

ChrysCapital is carrying out the buyout through its latest fund. The PE firm, which raised a record $2.2 billion last year for its tenth fund, set a record for raising the largest sector-agnostic private equity fund ever raised by a firm in the country. The latest fund's corpus size is 60% higher than the $1.35-billion it raised three years ago for its ninth fund.

For ChrysCapital, the acquisition expands its footprint in healthcare and marks the firm's first majority acquisition in the Indian pharmaceutical space. At present, ChrysCapital's healthcare portfolio includes at least four pharmaceutical and domestic formulation companies: La Renon Healthcare, Intas Pharmaceuticals, Eris Lifesciences, and Corona Remedies. It had invested $70 million in Gujarat-based La Renon Healthcare in 2024. Some of its notable exits in the pharma space so far include GVK Bio, Zydus Cadilla, Torrent Pharma, Ipca Laboratories, Curatio Healthcare, and Mankind Pharma.

The Swiss company does not have a manufacturing presence in India. In April 2025, Novartis announced plans to spend $23 billion to build and expand in the U.S., as it faced renewed threats of drug import duties on pharmaceuticals under the Trump administration.