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, as per an exchange filing on Friday.
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.
Deal Structure and Open Offer
As part of the transaction, three acquirers, namely WaveRise Investments Limited, ChrysCapital Fund X and Two Infinity Partners, will collectively purchase the promoter stake.
Under the agreed structure:
• One acquirer will buy 56.45% of the company at Rs 860.64 per share.
• The remaining 14.23% will be acquired at Rs 701.25 per share by the other two entities.
In line with SEBI's takeover regulations, the acquirers will launch a mandatory open offer to public shareholders at Rs 860.64 per share. The offer will be managed by Axis Capital.
At the close the last tradings ession on Feb 19, Novartis India shares were priced at Rs 830.45, valuing the company at around Rs 2,050 crore.
Shift of Control
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.
The company has entered into a covenant and warranty deed, committing to operate in the ordinary course of business until closing and assist in regulatory and open offer processes.
Strategic Implications
Novartis India markets products across diabetes, neurology, cardiology and dermatology, with Voveran among its well-known brands. For FY25, the company reported revenue of Rs 356.27 crore and net profit of Rs 100.90 crore.
For ChrysCapital, the acquisition expands its footprint in healthcare, adding to existing investments such as Intas Pharma and Eris Lifesciences. The transaction signals a broader trend of global pharmaceutical majors reassessing their India strategies, even as private equity firms deepen their exposure to the domestic healthcare sector.
The open offer and subsequent control transition are expected to unfold over the coming months, marking a new chapter for the company under private equity ownership.
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