Novartis Exits India Unit in ₹1,446 Crore Deal with ChrysCapital

Introduction

Swiss pharmaceutical major Novartis AG has announced its decision to sell its entire 70.68% stake in its publicly listed Indian subsidiary, Novartis India Limited. The stake will be acquired by a consortium led by private equity firm ChrysCapital for approximately ₹1,446 crore ($159 million). The announcement, made on Friday, February 20, 2026, triggered a significant market reaction, with shares of Novartis India surging by as much as 18%.

Details of the Transaction

The agreement involves the sale of Novartis AG's complete holding to a consortium comprising WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners. According to exchange filings, the deal was formalized through a share purchase agreement. This transaction marks a significant shift in ownership for the Indian entity, which has been part of the Novartis global structure for decades.

As per regulatory requirements under the Securities and Exchange Board of India (SEBI), the acquisition of a stake over 25% triggers a mandatory open offer. Consequently, the ChrysCapital-led consortium will make an open offer to the public shareholders of Novartis India to acquire an additional 26% of the company. The offer price has been set at ₹860.64 per share.

Market Reacts to Divestment News

Investors responded positively to the news of the stake sale. On Friday morning, shares of Novartis India Limited zoomed up to 18%, reaching a high of ₹979.95 per share on the stock exchange. This was a substantial increase from its closing price of ₹830.45 on the previous day, Thursday, February 19. The open offer price of ₹860.64 represents a 3.6% premium over Thursday's closing price, signaling confidence from the acquirers.

Novartis AG's Strategic Shift

The divestment is a result of a strategic review that Novartis AG initiated in February 2024. The move aligns with the Swiss company's global strategy to transform into a 'pure-play innovative medicines company.' By selling its stake in the listed Indian entity, Novartis is streamlining its global operations to focus on its core areas of innovation and growth.

However, Novartis AG is not completely exiting the Indian market. The company will maintain a significant presence through its wholly-owned subsidiary, Novartis Healthcare Private Limited (NHPL). This entity includes the commercial arm of Novartis in India, a corporate center in Hyderabad, and robust R&D teams conducting clinical trials at over 300 sites across the country. NHPL employs more than 9,000 associates and will continue to focus on expanding its portfolio in areas like Cardio Renal Metabolic and Oncology.

The Future of Novartis India

Upon completion of the transaction, Novartis AG will no longer be the promoter of Novartis India Limited. The ChrysCapital-led consortium will assume control and be classified as the new promoters. As part of the agreement, Novartis India is required to change its name within 120 days of the deal's completion to remove any reference to the Novartis group. The transaction is subject to the fulfillment of certain conditions and is expected to close in the third quarter of 2026.

ChrysCapital Expands Pharma Portfolio

For ChrysCapital, one of India's largest private equity firms, this deal marks its first majority stake acquisition in the Indian pharmaceutical sector. The firm has a strong track record of investing in the industry, with existing investments in companies like Intas Pharma, Eris Lifesciences, Corona Remedies, and La Renon. This acquisition provides ChrysCapital with a controlling position in a well-established company with a known portfolio of products, including the popular painkiller Voveran.

A Look at Novartis India's Financials

Novartis India Limited has a portfolio of established medicines for treating diabetes and chronic neurological, cardiological, and dermatological conditions. For the fiscal year 2024-2025, the company reported revenues of ₹356.27 crore and a net profit of ₹100.90 crore. The acquisition gives the new promoters control over these revenue streams and established brands.

Key Deal Metrics

Conclusion

The sale of Novartis AG's stake in its Indian listed arm to ChrysCapital represents a strategic realignment for the Swiss drugmaker and a significant new investment for the private equity firm. While Novartis AG sharpens its focus on innovative medicines globally, ChrysCapital gains a controlling stake in a company with a stable product portfolio in the Indian market. The transaction is poised to reshape the future of Novartis India Limited under new ownership, with the deal expected to be finalized later this year.