Novartis India Share Price Jumps 18% After ₹1,445.89 Crore Stake Sale; Big Shift in Stock Market Today

The Novartis India share price turned into the headline act in the stock market today.

Shares surged 18% in intra-day trade on February 20 after promoter Novartis AG announced it would sell its entire 70.68% stake in its India unit. The development triggered a mandatory open offer and marked a complete change in ownership control.

Investors reacted instantly. Volumes picked up. The counter moved sharply higher.

This isn’t just a routine deal. It’s a structural shift.

Market Performance: Novartis India Share Price Reacts Strongly

The announcement sent the Novartis India share price soaring.

• Intra-day high: ₹979.95
• Open offer price: ₹860.64 per share
• Previous close: ₹830.45
• Premium to previous close: 3.64%

The 18% jump clearly reflects market enthusiasm after the promoter exit and clarity on pricing.

Despite the rally:

• The stock remains about 11% below its 52-week high of ₹1,099.90 (May 2025)
• 52-week low: ₹744.95 (March 2025)

Recent Performance Snapshot

• 1 month: Up 22%
• 3 months: Up 15%
• 1 year: Up over 14%
• 5 years: Delivered 56% return

The momentum seen in the stock market today builds on an already steady recovery pattern in the pharma stock.

Main News: Novartis AG to Sell 70.68% Stake for ₹1,445.89 Crore

At the heart of the move is promoter Novartis AG, which has agreed to divest its entire 70.68% holding in Novartis India.

Key Transaction Details

• Stake being sold: 70.68%
• Equity shares involved: 1,74,50,680 shares
• Transaction value: ₹1,445.89 crore
• Buyer: Consortium led by WaveRise Investments Limited, ChrysCapital Fund X, Two Infinity Partners
• Persons acting in concert: ChrysCapital X, LLC and OceanEdge Investments Limited

This share purchase agreement automatically triggered an open offer under SEBI regulations.

That’s the part public investors are closely watching.

Open Offer Structure: What Public Shareholders Should Know?

The acquirers have announced an open offer to buy:

• Up to 64,19,608 fully paid-up equity shares
• Representing 26% of voting share capital
• Face value per share: ₹5
• Open offer price: ₹860.64 per share
• Total open offer size: ₹552.49 crore
• Entirely payable in cash

If fully subscribed, the acquirers’ total shareholding will rise to 96.68%.

If no shares are tendered, it stays at 70.68%.

This clarity on numbers supported the sharp rise in the Novartis India share price in the stock market today.

Change in Control: A Fresh Chapter Begins

Post transaction:

• Novartis AG will hold nil shares
• It will cease to be in control
• It will be reclassified from promoter category to public category as per SEBI norms

The acquirers have stated clearly:

• They do not intend to delist Novartis India
• They will ensure compliance with the 25% minimum public shareholding rule

Ownership transitions like these don’t happen often. And when they do, markets respond quickly — as seen in the Novartis India share price action.

Company-Level Changes Ahead

The company has agreed to:

• Remove references to the seller group from its name
• Complete the name change within 120 days of transaction completion
• Undertake post-closing regulatory filings

This means the brand identity will evolve.

But operations will continue as a listed entity on the Indian stock market.

Why the Novartis India Share Price Moved So Fast?

In the stock market today, sharp moves often come from clarity.

Here’s what stood out:

1. Clear transaction value: ₹1,445.89 crore
2. Defined open offer price: ₹860.64
3. Full promoter exit: 70.68% stake
4. Transparent open offer size: ₹552.49 crore

There was no uncertainty around structure.

Numbers were placed on the table immediately.

That transparency accelerated investor reaction.

Stock Market Today: Investor Sentiment Around Corporate Restructuring

Corporate actions drive volatility.

When a global parent exits completely, the street reads it as a structural reset.

The 18% jump in Novartis India share price reflects that sentiment shift.

It signals:

• A clear transfer of control
• Defined acquisition pricing
• Continuation as a listed company
• No immediate delisting plan

Those elements reduce speculation and bring pricing clarity.

Detailed Breakdown of the Financial Structure

Numbers matter. In the stock market today, they speak louder than commentary.

Performance Trend: Where the Stock Stands Now?

Even after Friday’s surge:

• The stock trades below its 52-week high
• Long-term return over 5 years stands at 56%
• Short-term momentum shows 22% rise in one month

The rally sits within a broader performance recovery arc.

A Turning Point for Novartis India

The transaction marks a shift:

• From multinational promoter ownership
• To a private equity–led consortium
• With continued listing status

This is not a routine quarterly update.

It’s a governance transition.

That’s why the Novartis India share price dominated action in the stock market today.

Summary: What This Means for Novartis India Share Price and Stock Market Today

Here’s the full picture in simple terms:

• Novartis AG is exiting completely.
• 70.68% stake sold for ₹1,445.89 crore.
• Open offer launched at ₹860.64 per share.
• Total open offer size: ₹552.49 crore.
• Shares rallied 18% to ₹979.95 intra-day.
• Company to change name within 120 days.
• No plan to delist.

The Novartis India share price reaction shows how sensitive the stock market today is to ownership transitions.

Deals change narratives.

Numbers define confidence.

And on February 20, the market responded without hesitation.

Source: Livemint