- Shares of Novartis India surged 20% after parent Novartis AG decided to sell its stake
- Novartis AG agreed to sell its 70.68% stake in Novartis India to private equity firm ChrysCapital
- The deal involves 1.74 crore shares transferring control from Novartis AG to ChrysCapital affiliates
Shares of Novartis India Ltd. have hit the upper circuit in trade on Friday after its parent company, Novartis AG, decided to sell its stake in the Indian arm. The stock is trading at Rs. 996.5, which accounts for gains of 20% compared to Thursday's closing price of 830.
The sharp rally comes as Novartis AG has signed a definitive agreement to sell its majority 70.68% stake in Novartis India to private equity firm ChrysCapital.
The deal will see 1.74 crore shares change hands, effectively transferring control of the company from the Swiss parent to entities affiliated with ChrysCapital. The move represents ChrysCapital's first majority acquisition in the Indian pharmaceutical space.
As part of the deal, three acquirers, namely WaveRise Investments Limited, ChrysCapital Fund X and Two Infinity Partners, will collectively purchase the promoter stake.
Having given investors returns of around 20% in the last 12 months, shares of Novartis India are currently trading with a relative strength index of 57, which suggests neutral market sentiment.
ALSO READ: Swiss Drug Major Novartis AG To Sell India Arm To ChrysCapital-Led Group
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