Novartis Share Price Jumps 17% in Stock Market Today After ChrysCapital Buyout Announcement

The Novartis share price turned heads in the stock market today.

In early trade, the stock surged more than 17%, touching Rs 974. The rally came right after the announcement that its Swiss parent, Novartis AG, will sell its controlling stake in Novartis India Ltd to a consortium led by ChrysCapital.

The news changed the mood instantly. What was quiet on Thursday turned electric by Friday morning.

Stock Market Today: Novartis Share Price Opens Strong

The Novartis share price was trading at Rs 974, up 17.3% in early deals.

Just a day earlier, the stock had closed 2.25% lower at Rs 830.45. The disclosure about the stake sale came after market hours. And by the next session, buyers rushed in.

At current levels:

• Market capitalisation: Around Rs 2,375 crore
• 1-year gain: 16.5% (including Friday’s rally)
• Dividend yield: 2.61%
• TTM PE ratio: 24.33

The sharp move shows how sensitive the stock market today is to ownership changes.

Main News: ChrysCapital-Led Consortium to Take Control

The key trigger behind the rally in Novartis share price was a definitive agreement.

In its official filing with the stock exchanges, the company disclosed that the promoter has executed a Share Purchase Agreement to sell 1.74 crore fully paid-up equity shares to the consortium of buyers.

The buyers include:

• WaveRise Investments Limited
• ChrysCapital Fund X
• Two Infinity Partners

Transaction Structure

The deal structure is detailed:

• 56.45% stake at Rs 860.64 per share
• 10.32% stake at Rs 701.25 per share
• 3.91% stake at Rs 701.25 per share

Once the transaction is completed:

• The acquirers will take control.
• They will be classified as new promoters.
• Novartis AG will cease to be the promoter.

This is a full change of ownership. And that’s why the Novartis share price reacted sharply in the stock market today.

Open Offer Details

As per Sebi regulations, the new acquirers must make a mandatory open offer.

• Open offer price: Rs 860.64 per share
• Eligible public shareholders can tender shares at this price.
• The open offer will be managed by Axis Capital.

Here’s the interesting part.

With the Novartis share price trading at Rs 974, it was already around 13% above the open offer price during early trade. That reflects the strong demand seen in the stock market today.

Company Details: What Changes After the Deal?

The transition will not stop at ownership.

The company confirmed:

• It will change its name to remove references to the Novartis group.
• The name change will happen within 120 days of deal completion, subject to regulatory approvals.
• ChrysCapital will have the right to nominate certain individuals to the board of directors.

This signals a structural shift. Not just financial. But operational too.

Business Overview of Novartis India

Even as the ownership changes, the company’s core business remains important.

Novartis India Ltd operates across multiple chronic therapy segments:

• Diabetes
• Neurology
• Cardiology
• Dermatology

One of its well-known brands includes Voveran, a widely recognized pain management product.

Financial Snapshot (FY24-25)

Let’s look at the numbers reported for the financial year 2024–25:

• Revenue: Rs 356.27 crore
• Net Profit: Rs 100.90 crore

These figures give context to the company’s valuation and explain why the Novartis share price remains closely tracked in the stock market today.

Why the Novartis Share Price Reaction Matters?

Ownership transitions often change the narrative around a company.

In the stock market today, investors closely watch:

• Control shifts
• Promoter exits
• Board reconstitution
• Branding changes

In this case, the exit of a global pharmaceutical parent and entry of a private equity-led consortium is a significant event.

That’s why the Novartis share price saw a double-digit surge in a single session.

Summary: A Defining Day for Novartis Share Price

The Novartis share price moved sharply higher in the stock market today, climbing over 17% to Rs 974.

The rally followed:

• Sale of 70.68% promoter stake
• Share purchase agreement for 1.74 crore shares
• Mandatory open offer at Rs 860.64
• Market cap standing at Rs 2,375 crore
• FY24-25 revenue of Rs 356.27 crore
• Net profit of Rs 100.90 crore

The development marks a complete promoter transition.

For now, the numbers are clear. The ownership is changing. The structure will evolve. And the Novartis share price has already reflected that shift in the stock market today.

Source: Moneycontrol