Novartis Exits Indian Subsidiary in $159 Million Stake Sale

The acquisition, led by WaveRise Investments alongside ChrysCapital Fund X and Two Infinity Partners, shifts control of the Mumbai-listed entity away from the Swiss parent. Under Indian securities law, the change in ownership requires the consortium to launch an open offer for an additional 26% of the company's public shares. This offer, priced at 860.84 rupees per share, could cost the investors approximately INR 5.52 billion if fully subscribed, according to regulatory filings.

A Strategic Realignment

The divestment follows a strategic review launched in February 2024, where Novartis evaluated the long-term viability of its shareholding in the unit. Despite the exit, the company confirmed that the sale will not impact Novartis Healthcare, its primary commercial arm in the country. This division continues to operate the Novartis Corporate Center in Hyderabad, maintaining the firm's significant operational footprint in India.

Investors responded positively to the announcement, sending shares of Novartis India up 16% during early trading on Friday. The move reflects a broader industry trend of multinational corporations restructuring their holdings to prioritize core global assets while maintaining essential service hubs in high-growth regions.