Novartis India’s IDC Recommends Open Offer for Acquisition of 26% Stake; Cites Fair and Reasonable Price
Novartis India Ltd's Committee of Independent Directors (IDC) has recommended the Open Offer put forward by a consortium of investors for the acquisition of a substantial stake in the company. The recommendation was issued following a meeting held on June 04, 2026.The IDC reviewed the Detailed Public Statement, the Letter of Offer, and a Valuation Report to issue its opinion regarding the open offer. The committee stated that the Offer Price is fair and reasonable from the perspective of the regulatory pricing framework applicable to the transaction.
Offer Details and Acquirers
The Open Offer targets public shareholders with the proposal for acquiring up to 64,19,608 fully paid-up equity shares of Novartis India Limited. These shares represent 26% of the total voting Share Capital. The offer price is set at INR 860.64 per equity share.
The offering is being made by a group of entities, collectively referred to as the Acquirers and Persons Acting in Concert (PACs).
The key parties involved are:
- Acquirers: WaveRise Investments Limited, ChrysCapital Fund X, the first scheme of ChrysCapital Trust I, and Two Infinity Partners.
- PACs: ChrysCapital X, LLC and OceanEdge Investments Limited.
IDC Findings and Market Context
The IDC noted that the Open Offer was triggered by a proposed acquisition of 1,74,50,680 equity shares (representing 70.68% of the voting share capital) from Novartis AG and the subsequent acquisition of control over the Target Company. The committee concluded that based on all reviewed documents, the offer price is in line with regulatory requirements and appears fair and reasonable.
In a notable observation, the IDC pointed out that the closing market price of equity shares on June 04, 2026 was INR 1351.20 (as per BSE), which is higher than the offered price of INR 860.64 per share. The committee advised public shareholders to independently evaluate the Open Offer based on their individual circumstances and risk factors detailed in the Letter of Offer.
Valuation Benchmarks
Supporting the assessment, a valuation report appointed by Novartis India Ltd provided data regarding the minimum price calculation. Based on the analysis conducted by ARCH AND ASSOCIATES, Chartered Accountants, the volume-weighted average market price for a period of sixty trading days immediately preceding the public announcement was calculated at INR 803.57.
The IDC’s recommendation to proceed with the Open Offer has been unanimously approved by all members present at the meeting held on June 04, 2026.
NOVARTIND Stock Price Movement
Novartis India Limited shares edged higher on Thursday, gaining 2.41% to settle at ₹1353 after rising by ₹31.90.The stock traded a volume of 33,136 shares that day.
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