Novartis to exit India arm in Rs 1,500 cr deal; shares jump nearly 18%

New Delhi (PTI): Swiss company Novartis on Friday said it has inked a pact with ChrysCapital group to sell entire 70.68 per cent stake in its Indian arm, Novartis India Ltd, in a deal valued at around Rs 1,446 crore.

The divestment follows a strategic review announced and conducted by Novartis AG starting in February 2024, the Swiss drug major said in a statement.

The closing of the transaction is subject to the satisfaction of certain conditions and is expected to close in the third quarter of 2026, it added.

The transaction has also triggered a mandatory open offer for public shareholders to tender up to 26 per cent of Novartis India's equity.

The acquirers have made a mandatory open offer to the public shareholders to acquire up to 64,19,608 shares constituting 26 per cent stake at Rs 860.64 per share aggregating to Rs 552.49 crore.

"The Board of Novartis India was informed of the decision by Novartis AG to transfer its shareholding following the signature today between Novartis AG and ChrysCapital," it said.

Upon completion of this transfer of shares, Novartis will complete its transformation into a pure-play innovative medicines company and continue to adapt its footprint for efficient, sustainable long-term growth aligned with its global strategy, it stated.

Novartis will continue its presence in India through Novartis Healthcare Pvt Ltd, a wholly-owned subsidiary of the Novartis group.

NHPL includes the commercial arm of Novartis in India, the Novartis Corporate Center in Hyderabad, and R&D teams, which currently conduct clinical trials at more than 300 sites in the country.

"Aligned with our global strategy, we are expanding our innovative Cardio Renal Metabolic and Oncology portfolio, marked by recent launches and a strong pipeline of innovative medicines for India," the drug maker stated.

Novartis India Ltd, an independent public company listed on BSE, is separate from Novartis Healthcare Pvt Ltd.

The transfer of Novartis AG shareholding in Novartis India will not impact Novartis Healthcare operations, the company stated.

Novartis currently employs more than 9,000 associates in India, it added.

Shares of Novartis India were trading 17.8 pc up at Rs 978.25 apiece on BSE.