NEW DELHI, Feb 20: Shares of Novartis India surged 20 per cent to hit the upper circuit limit on Friday after its parent firm Novartis AG agreed to sell a majority stake in its Indian unit to private equity firm ChrysCapital.
The stock zoomed 20 per cent to Rs 996.50 apiece — its upper circuit limit — on the BSE.
Meanwhile, the markets are trading in the positive territory, with the 30-share BSE Sensex climbing 341.59 points, or 0.41 per cent, to 82,839.73 in the morning trade.
In a regulatory filing, Novartis India Ltd on Friday said that Novartis AG (Seller), its promoter, has entered into a Share Purchase Agreement (SPA) for the sale of 1.74 crore equity shares, representing a 70.68 per cent stake in the company, to WaveRise Investments Ltd, ChrysCapital Fund X, and Two Infinity Partners (acquirers).
In a separate filing, Novartis India said the transaction will trigger an open offer for public shareholders to tender up to 26 per cent of the company’s equity.
The open offer, made by WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners, along with ChrysCapital X, LLC, and OceanEdge Investments Ltd, as persons acting in concert (PACs) — will allow public shareholders to tender up to 64.19 lakh shares, representing 26 per cent of the voting share capital of Novartis India, it said.
The offer prices have been set for Rs 860.64 per share, aggregating to a total consideration of Rs 552.49 crore, subject to revisions in accordance with the Securities and Exchange Board of India (Sebi) SAST (Substantial Acquisition of Shares and Takeovers) regulations, it added.
The mandatory open offer follows the execution of the SPA that enables the acquirers to gain a substantial number of equity shares, voting rights, and control over Novartis India Ltd, the company said.
After the completion of the transaction, Switzerland-based Novartis AG will exit the Indian arm.
ChrysCapital has stakes in pharmaceutical companies such as Intas Pharma, Eris Lifesciences, Corona Remedies and La Renon. (PTI)
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