Novartis India shares soar 18% as Swiss parent plans full exit in Rs 1,446 crore deal

Core Viewpoint - Novartis AG is selling its entire 70.68% stake in Novartis India for approximately Rs 1,446 crore to a consortium including WaveRise Investments, ChrysCapital, and Two Infinity Partners, with an open offer for an additional 26% stake from public shareholders at Rs 860.64 per share, representing a 3.6% premium to the previous closing price [8][6]. Group 1: Acquisition Details - The consortium has signed an agreement to acquire Novartis AG's stake at Rs 860.64 per share, which is in accordance with SAST regulations [8][6]. - The total consideration payable under the open offer, assuming full acceptance, will be Rs 552.5 crore [8][6]. - If the entire 26% shareholding is tendered, WaveRise will own 72.78% of equity, ChrysCapital Fund X will own 17.33%, and Two Infinity Partners will hold 6.57% [4][8]. Group 2: Ownership Scenarios - In the event that no shares are tendered under the open offer, WaveRise will still have a majority stake of 56.45%, while ChrysCapital's fund will own 10.32% and Two Infinity Partners will have 3.91% [5][8]. - The open offer is a mandatory requirement under SEBI regulations due to the acquisition of a substantial number of equity shares and control over the target company [6][8]. Group 3: Future Plans - After the acquisition, the new owners plan to change the company's name, pending regulatory and corporate approvals [2][8]. - This divestment follows Novartis's strategic review of its stake in Novartis India, which began two years prior [6][8].