Novartis India Promoter Sells 70% Stake, Open Offer at Rs 860.64

Novartis AG has agreed to quit its entire 70.68% stake in Novartis India Ltd, selling to a consortium led by WaveRise Investments, ChrysCapital Fund X and Two Infinity Partners, along with ChrysCapital X, LLC and OceanEdge Investments Limited. The deal triggers an open offer to public shareholders for up to 26% of voting share capital at Rs 860.64 per share, a premium of about 3.64% to Thursday’s close of Rs 830.45. The open offer would involve the acquisition of up to 64,19,608 fully paid-up equity shares of face value Rs 5 each, totaling up to around Rs 552.49 crore. For the transaction, Novartis India Ltd will enter into a covenant and warranty deed with the seller and acquirers, with the company providing customary warranties on a non-recourse basis and agreeing to assist the acquirers with information required for the offer. The promoter stake sale amounts to 1,74,50,680 shares, representing 70.68% of the promoter holding. The company also disclosed that it has undertaken post-closing obligations and regulatory filings related to the transaction. Novartis India said it will change its name to remove all references to the seller group within 120 days from completion of the transaction. In parallel, the board approved execution of the covenant and warranty deed following which it was signed by the company. The news comes as public investors welcomed the deal, and the stock has been in focus on the day of the announcement.

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