Novartis Sells Its India Business to Private Equity Group for ₹1,446 Crore

Novartis Sells Its India Business to Private Equity Group for ₹1,446 Crore

Swiss pharmaceutical giant Novartis has decided to walk away from its listed Indian subsidiary. The company has struck a deal to sell its entire 70.68% stake in Novartis India Limited to a group of investors led by homegrown private equity firm ChrysCapital. The deal is worth around ₹1,446 crore, and the news sent Novartis India's stock soaring 20% on February 20, 2026.
Who Is Buying and for How Much?
The buying consortium has three main members - WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners. Among them, WaveRise is picking up the largest chunk at 56.45%, while ChrysCapital takes 10.32% and Two Infinity Partners gets 3.91%. The shares are being sold at ₹860.64 each. Since this kind of large acquisition triggers rules under India's takeover regulations, the buyers are also required to make an open offer to public shareholders. They have offered to buy up to an additional 26% of the company from ordinary investors at the same price of ₹860.64 per share, which would cost them another ₹552 crore if fully taken up. If all public shareholders accept the open offer, the consortium would end up holding close to 97% of the company.
Why Is Novartis Selling?
This move has been on the cards for a while. Novartis AG started a strategic review of its India listed unit back in February 2024. The global company has been on a mission to become what it calls a "pure-play innovative medicines company" - meaning it wants to focus only on developing and selling cutting-edge, patented medicines rather than running a diversified portfolio that includes older, off-patent drugs. Novartis India's business has been struggling. Sales have been falling steadily, dropping from ₹655 crore in December 2022 to ₹493 crore by December 2025. Its biggest product in India, a heart failure drug called Vymada, lost patent protection and has since faced heavy competition from cheaper generic versions. Revenue from Vymada fell from ₹258 crore to ₹180 crore over the same period. Selling off a declining business in a non-core market made clear strategic sense for the Swiss company.
What Happens to Novartis in India After the Sale?
This is where things get a bit nuanced. Novartis is not disappearing from India entirely. The company will continue to operate in the country through a separate entity called Novartis Healthcare Private Limited, which is a wholly owned subsidiary of the global parent - completely independent from the listed Novartis India that is being sold. Through this subsidiary, Novartis will maintain its commercial operations, its large corporate centre in Hyderabad, and research teams running clinical trials at over 300 sites across India. The company employs more than 9,000 people in India - roughly 11% of its global workforce - and runs the largest pharmaceutical global capability centre in the country. None of this is affected by the stake sale. Novartis India Limited, the listed company being sold, will also have to change its name within 120 days of the deal closing, since it can no longer carry the Novartis brand after the parent exits.
What Does This Mean for Investors and the Market?
Markets reacted enthusiastically. Novartis India shares hit the 20% upper circuit on BSE, closing at ₹996.50. The stock had been trading at ₹830.45 the previous day, meaning the open offer price of ₹860.64 offered a modest premium of about 3.6% over the pre-announcement price. The company's shares had already gained around 22% in the month before the announcement, suggesting some market anticipation. Despite the recent jump, the stock is still below its 52-week high of ₹1,099.90 touched in May 2025. There is also some uncertainty around what happens to Novartis India's distribution deal with Dr. Reddy's Laboratories, signed in 2022, which gives DRL exclusive rights to sell established brands including the popular pain drug Voveran. Dr. Reddy's has said it is aware of the development but is not ready to comment yet.
What Comes Next?
The deal is expected to close sometime in the July–September 2026 quarter, subject to regulatory approvals. The consortium has confirmed it does not plan to delist the company, so Novartis India will remain listed on the BSE with new owners at the helm. For Novartis globally, this transaction wraps up a long-planned transformation. For India's pharma market, it marks the entry of a large private equity player into a listed pharmaceutical company - something that could reshape how the business is run going forward.