Novartis Exits Indian Subsidiary in $159 Million Stake Sale
Novartis AG sells 70.7% stake in its Indian unit to a private equity consortium led by WaveRise Investments for $159 million, marking a complete exit from the listed subsidiary while retaining its commercial operations.
A consortium of private-equity firms led by WaveRise Investments has agreed to buy a nearly 71% stake in the Indian unit of Swiss pharmaceutical giant Novartis AG. The stake sale is valued at 14.46 billion rupees, equivalent to $159 million, according to Novartis India's filing to the stock exchange.
The deal marks Novartis' full exit from its Indian subsidiary. It will transfer control of the company to the consortium, which also includes ChrysCapital Fund X and Two Infinity Partners.
The acquisition triggers a mandatory open offer under Indian securities law to buy up to 26% of public shares at 860.84 rupees a share. If fully accepted, the offer would cost the consortium roughly INR 5.52 billion, the filing said.
In February 2024, Novartis said it was launching a strategic review of its listed entity in India, including an assessment of its shareholding in the company.
Novartis said then that the review wouldn't affect Novartis Healthcare, its commercial arm in India. Novartis Healthcare includes the Novartis Corporate Center in Hyderabad.
Shares of Novartis India surged 16% in early trading Friday.