Novartis AG has agreed to sell its 70.68% stake in Novartis India Limited for 14.46 billion rupees (approximately $159 million) to an investment consortium comprising WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners. This transaction effectively concludes the strategic review announced in February 2024, which focused on the Indian-listed subsidiary responsible for marketing prescription drugs, generic medicines, and over-the-counter products. The newly signed agreement now charts a clear path forward for the business under new majority ownership.

As part of the transaction framework, the acquiring consortium has also launched a public offer to purchase up to 26% of the remaining shares in Novartis India at a price of 860.84 rupees per share, valuing the offer at around 5.52 billion rupees. Market reaction was swift: during trading in Mumbai, shares of Novartis India surged as much as 19.3% to 996.50 rupees, trading above the public offer price. This movement may indicate that investors see potential upside for the company beyond the terms of the offer, anticipating a promising new chapter.

Importantly, Novartis had previously clarified that its strategic review did not include its wholly-owned subsidiary, Novartis Healthcare Private Limited, which operates the Hyderabad corporate center, manages commercial operations, and oversees R&D teams conducting clinical trials across more than 300 locations nationwide. Even before the review began, Novartis India had entered into distribution agreements with domestic partners, including a deal with Dr. Reddy’s Laboratories Ltd. to market brands such as Voveran, calcium product series, and Methergine in India. Overall, the divestiture appears to reshape the ownership structure of the listed subsidiary while preserving Novartis’ broader infrastructure and R&D footprint in the country.