Novartis AG has agreed to sell its 70.68% stake in Novartis India Limited (NIL) to a consortium comprising WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners. The transaction is valued at approximately $159 million, or Rs 1,446 crore, and triggers a mandatory open offer to public shareholders to acquire up to 26% of NIL at Rs 860.84 per share. The deal is expected to close in the third quarter of 2026.
The divestiture is part of Novartis’s broader strategy to become a pure‑play innovative medicines company. Following the 2023 spin‑off of its generics and biosimilars unit, Sandoz, the company has been systematically shedding non‑core assets. By exiting its legacy Indian unit, Novartis reduces exposure to the country’s regulatory and pricing environment and frees capital that can be redirected toward high‑margin oncology, immunology and neuroscience brands, as well as strategic investments such as the North Carolina manufacturing hub and the Avidity acquisition.
Shares of Novartis India Limited surged 20% and 18% to the upper circuit on the announcement, reflecting investor enthusiasm for the change in control and the opportunity presented by the mandatory open offer. The market reaction underscores the perceived value unlock for minority shareholders and the confidence that the new owners will bring fresh capital and strategic focus to the business.
The sale removes a profitable but low‑growth segment that markets older and off‑patent drugs in immunology, neuroscience and pain management. By divesting this legacy business, Novartis can concentrate resources on its high‑margin, innovation‑led medicines portfolio. The transaction aligns with the company’s 2026 guidance of low‑single‑digit sales growth and a slight decline in core operating income, a trend partly driven by the Avidity deal’s expected margin dilution.
Novartis Healthcare Private Ltd., the wholly‑owned subsidiary that houses the company’s commercial, corporate and R&D teams in India, will continue to operate independently. The strategic review of the Indian unit began in February 2024, and the sale represents the culmination of that review.
The divestiture is a key milestone in Novartis’s transformation, providing a modest cash inflow while sharpening its focus on innovative medicines and maintaining a presence in India through its private subsidiary.
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