Novartis India share price surged 18% in intra-day trade on Friday, February 20, after promoter Novartis AG agreed to sell its entire stake in the company, triggering a mandatory open offer and a complete change in control.
Novartis AG has agreed to divest its 70.68% stake, comprising 1,74,50,680 equity shares, to a consortium led by WaveRise Investments Limited, ChrysCapital Fund X, and Two Infinity Partners, along with persons acting in concert ChrysCapital X, LLC and OceanEdge Investments Limited. The transaction has resulted in an open offer for public shareholders to tender up to 26% of the company’s equity.
The open offer price has been fixed at ₹860.64 per share, which represents a 3.64% premium to Thursday’s closing price of ₹830.45.
Novartis India said it has agreed to change its name to remove all references to the seller group within 120 days from the completion of the transaction. In addition, the company has undertaken certain post-closing obligations, including completing all relevant regulatory filings linked to the deal.
Novartis India share performance
Following the announcement, Novartis India shares rallied 18% to an intra-day high of ₹979.95 on the BSE. The sharp rally came as investors priced in the exit of the global parent and the entry of financial investors, along with clarity on pricing and control. Despite the surge, the stock is still around 11% below its 52-week high of ₹1,099.90, touched in May 2025. On the downside, the stock’s 52-week low stands at ₹744.95, hit in March 2025.
In terms of recent performance, the pharma stock has gained 22% in the last one month and 15% over the past three months. On a longer-term basis, the stock is up over 14% in one year and has delivered a 56% return over the past five years.
Open offer details and change in control
Under the open offer, the acquirers have announced plans to purchase up to 64,19,608 fully paid-up equity shares, each with a face value of ₹5, from public shareholders. These shares represent 26% of the voting share capital of Novartis India. The total consideration for the open offer works out to ₹552.49 crore, payable entirely in cash, assuming full acceptance.
The open offer has been triggered following the execution of a share purchase agreement under which the acquirers will acquire 70.68% of the company from Novartis AG. The total consideration for the underlying transaction has been pegged at around ₹1,445.89 crore, subject to adjustments as outlined in the agreement.
If the open offer is fully subscribed, the acquirers’ combined shareholding in Novartis India will rise to 96.68%. In case no shares are tendered, their stake will remain at 70.68%, corresponding to the shares acquired from the promoter.
“The open offer is being made to acquire up to 26% of the voting share capital at a price of ₹860.64 per equity share, aggregating to a total consideration of up to ₹552.49 crore, payable in cash,” the public announcement said.
Following the consummation of the transaction, Novartis AG will hold nil shares, cease to be in control of the company, and will be reclassified from the promoter category to the public category in line with SEBI regulations. The acquirers have clarified that they do not intend to delist Novartis India but will ensure compliance with the 25% minimum public shareholding norm if required.
The transaction marks a significant turning point for Novartis India, with ownership shifting from a global pharmaceutical major to a private equity-led consortium, even as the company continues to operate as a listed entity on the Indian stock market.
