Swiss drugmaker Novartis to exit India listed unit in $159 mn deal

Swiss drugmaker to divest entire holding in Novartis India to a ChrysCapital-led consortium; open offer at Rs 860.64 per share to follow under takeover rules

Novartis AG is exiting its listed Indian arm, drawing the curtain on a decades-long presence in India’s public markets as the Swiss drugmaker sharpens its focus on high-margin, innovation-led medicines.

 

The Swiss drugmaker will sell its entire 70.68 per cent stake in its listed Indian unit to a private equity-led consortium for about $159 million as part of a broader global restructuring.

 

In disclosures to stock exchanges on February 19 and 20, Novartis India Limited said its promoter, Novartis AG, has agreed to sell 17.45 million shares to a consortium led by WaveRise Investments, ChrysCapital Fund X and Two Infinity Partners. The transaction will trigger a mandatory open offer to public shareholders under India’s takeover regulations.

 

 

The open offer price has been set at Rs 860.64 per share and is being managed by Axis Capital. At the close of trade on February 19, Novartis India shares ended at Rs 830.45 apiece, valuing the company at a market capitalisation of Rs 2,050.45 crore. The stock was trading over 19 per cent higher in morning trade on the BSE following the announcement.

 

Upon completion, Novartis AG will cease to be a promoter, with the acquirer group assuming control. The company will also be required to change its name within 120 days of closing to remove all references to the Novartis group, signalling a complete brand separation.

 

ChrysCapital’s existing healthcare investments include Intas Pharmaceuticals, Eris Lifesciences, Corona Remedies and La Renon.

 

According to Reuters, the transaction values Novartis India at around $225 million, with Novartis AG expected to receive about $159 million for its stake. The buyer consortium is expected to acquire the shares through a special purpose vehicle, WaveRise Investments, and retain the company’s listed status while repositioning it in India’s branded generics and domestic formulations market.

 

Novartis India has a portfolio of products for diabetes and chronic neurological, cardiological and dermatological illnesses, including brands such as Voveran. For FY25, the company reported revenue of Rs 356.27 crore and net profit of Rs 100.90 crore.

 

The deal marks a decisive step by Novartis to exit India’s mass-market pharmaceutical business, which, while profitable, has limited strategic alignment with its global priorities. Bloomberg reported that Novartis has increasingly focused on patented, high-value therapies in oncology, immunology and neuroscience.

 

Over the past decade, the Indian subsidiary has transferred or discontinued several legacy brands, outsourced manufacturing and reduced capital allocation. What remains is a profitable but low-growth portfolio attractive to private equity investors.

 

Stock exchange disclosures state that Novartis India will continue to operate in the ordinary course until closing and support the acquirers in executing the open offer. The company has provided customary warranties and agreed to interim operating restrictions, indicating a full transfer of control.

 

The transaction also reflects a broader shift among multinational drugmakers, which are reassessing the relevance of listed subsidiaries in emerging markets unless they are central to global research and development or supply chains.