Friday, February 20: Shares of Novartis India Limited jumped sharply in early trade after its promoter, Novartis AG, agreed to sell a majority stake in the company to a consortium led by ChrysCapital.
The stock was trading at Rs 952.10, up 14.65% or Rs 121.65 in the morning session, reflecting strong investor reaction to the ownership change announcement.
In an exchange filing, the company said Novartis AG has entered into a share purchase agreement with WaveRise Investments Limited, ChrysCapital Fund X and Two Infinity Partners to sell 1.74 crore fully paid-up equity shares, representing 70.68% of the company’s paid-up equity share capital.
Upon completion of the transaction, Novartis AG will cease to be the promoter of the company. The acquiring consortium will assume control and be classified as the new promoters.
The company also stated that Novartis India will change its name to remove all references to the Novartis group within 120 days of completion of the transaction.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.