Swiss pharmaceutical major Novartis AG has officially concluded its two-year strategic review of its Indian listed entity by announcing a complete exit. On Friday, February 20, 2026, the company informed stock exchanges that it has executed a share purchase agreement to sell its 70.68% controlling stake to a private equity-led consortium for roughly ₹1,446 crore.
Add businessleague.in as a Preferred Source
The acquiring group consists of WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners. Following the deal, the consortium has launched a mandatory open offer to acquire up to 26% of the remaining public shares at ₹860.64 per share. If fully subscribed, the buyers could own over 96% of the company, though they have expressed intentions to remain listed and comply with minimum public shareholding norms.
Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1
The $159 Million Handover
The transaction marks the end of an era for one of India’s oldest multinational pharma presence. Novartis India, known for established brands like Voveran (pain management) and Calcium Sandoz, has seen its revenue decline at an average rate of 4% over the last five years.
Under the new structure, WaveRise is expected to hold a majority stake of 56.45%, while ChrysCapital and Two Infinity Partners will hold 10.32% and 3.91% respectively. The consortium plans to rename the company within 120 days to remove all references to the “Novartis” brand.
Strategic Pivot: Why Novartis is Leaving
The exit is part of a broader global “US-first” realignment by Novartis AG. In April 2025, the parent company announced a massive $23 billion investment to domesticate its supply chain in the United States, responding to “Liberation Day” tariffs and pro-innovation policies in the American market.
However, Novartis is not leaving India entirely. The company will retain Novartis Healthcare Private Limited, its wholly-owned subsidiary based in Hyderabad. This center serves as a global capability hub for R&D and clinical trials, employing over 8,000 associates.
WaveRise & ChrysCapital: The New Promoters
This deal marks ChrysCapital’s maiden majority stake acquisition in the Indian pharmaceutical sector. Known for its minority investments in giants like Intas and Eris Lifesciences, the PE firm is expected to optimize Novartis India’s mature product portfolio and explore new growth avenues in the chronic care segment.
Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1
Reality Check
The stock hit a 20% upper circuit today. Still, the open offer price of ₹860.64 is actually lower than the market high of ₹996.50 reached during the intraday rally. Therefore, public shareholders might find the open offer unattractive unless the stock price cools significantly. In fact, the enthusiasm is driven by “valuation clarity” rather than an immediate arbitrage opportunity.
The Loopholes
Novartis AG is exiting the listed entity but keeping the R&D hub. In fact, this is a “tax-efficient exit” from a slow-growth commercial arm while retaining the high-value intellectual capital in Hyderabad. Therefore, while it looks like a “withdrawal from India,” it is actually a surgical separation of manufacturing/trading from research. Still, the requirement to rename the company within 120 days creates a “branding loophole” where the new owners must build trust for Voveran under a new corporate banner.
Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1
What This Means for You
If you are a shareholder, realize that the open offer is now the floor for the stock. First, compare the ₹860.64 offer price with the prevailing market rate; if the market stays above ₹950, do not tender your shares in the offer. Then, watch for the “Record Date” of the offer to see if you are eligible.
Finally, understand that the “Novartis” brand will vanish from your portfolio. You should expect a period of volatility as the new management transitions the company from a multinational subsidiary to a private-equity-driven enterprise. Before the name change occurs, verify the “Post-Closing Covenant” details to ensure the new owners have secured the rights to continue selling the existing drug portfolio.
What’s Next
The open offer process will likely commence in late March or early April 2026. Then, the name change and board reconstitution will follow by June. Finally, look for ChrysCapital’s first quarterly strategy update for the “New-Co” in the second half of the year to see how they plan to arrest the revenue decline.
Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1
End…
Add businessleague.in as a Preferred Source
