Novartis India Jumps 20% On Parent’s ₹1,446 Crore Exit Deal

Shares of Novartis India Ltd increased by 20% on 20 February 2026 to around ₹996 per share. This news came after the Swiss parent company announced plans to exit its Indian-listed unit through a stake sale valued at approx. ₹1,446 crore. The announcement triggered strong buying interest from investors, which propelled the stock to its daily trading limit. But what exactly has driven this sudden rally, and what does the transaction entail?

What Exactly Is The Deal And Who Are The Buyers?

Novartis AG, the Swiss multinational pharmaceutical giant, has entered into a definitive agreement to sell its entire 70.68% stake in Novartis India Ltd to a consortium comprising WaveRise Investments, ChrysCapital Fund X and Two Infinity Partners for about $159 million (roughly ₹1,446 crore).

The consortium is led by private equity investors, with ChrysCapital emerging as a key player in the acquisition. Under Securities and Exchange Board of India (SEBI) regulations, the stake sale triggers a mandatory open offer to acquire an additional 26% of the company’s shares from public shareholders at ₹860.64 per share, which represents about a 3.6% premium to the previous closing price.

Detailed disclosures show that ChrysCapital-related entities will collectively acquire 56.45% of the equity at the open offer price, while the other investors will take smaller parcels, with certain tranches priced at around ₹701.25 per share for part of the holding.

This full exit by the Swiss parent follows a strategic review begun nearly two years ago, as Novartis AG recalibrates its global portfolio, focusing more on larger markets and priority R&D investments while divesting smaller listed commercial units.

How Did Markets And Valuation React To This Announcement?

The stock market reaction was immediate and sharp. On 20 February, the Novartis India share price climbed nearly 20%, reaching ₹996.5 per share in early trade.

Despite the strong rally on Friday, broader Indian markets were subdued, with benchmark indices such as the BSE Sensex and NSE Nifty trading mixed or slightly lower on the same session due to sectoral weaknesses in IT and pharma counter-selling in other large stocks.

Novartis India has posted mixed results in recent reporting periods. Independent industry commentary highlighted that while revenues have seen some stagnation and modest declines in recent quarters, the company continues to hold a solid niche in prescription and OTC product portfolios, including established brands for pain and chronic conditions.

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What Does Novartis’ Exit Mean For The Company’s Future?

Novartis AG’s move to completely exit the listed Indian entity aligns with global restructuring trends. Two years ago, the Swiss parent began reviewing its stake in the Indian unit as part of broader portfolio optimisation.

Under the new ownership consortium, Novartis India may witness a refreshed strategic direction. Private equity owners typically pursue: operational restructuring, expansion of product portfolios, and synergy realisation with other assets in their portfolios. The mandatory open offer provides minority shareholders with liquidity at a fair price while transferring control to the consortium.

Industry observers are also monitoring how the new owners navigate competitive pressures in the Indian pharmaceutical market: a place where domestic and multinational rivals continue to contest for volume and pricing share.

Sources :

Reuters

Moneycontrol

Businessline

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