Mumbai: Shares of Novartis India surged 20% in morning trade on the BSE on Thursday, following the announcement that Swiss drug firm Novartis AG sweetened its open offer price to Rs450 a share for acquiring an additional 39% stake in its Indian subsidiary.
Novartis AG has revised upward the price of the offer to Rs450 per share, from the original offer price of Rs351 a piece, Novartis India said in a filing to the Bombay Stock Exchange (BSE).
Its shares hit upper circuit at Rs467.50 in morning trade on the BSE.
In March, Novartis AG had said it would make an open offer for a further 1,24,64,710 shares or 39% stake in its Indian subsidiary, at a price of Rs351 per share.
The offer, which begun on 20 May, for buying back of shares from its shareholders, would close on 8 June.
At present, the Swiss parent holds a 50.9% stake in Novartis India. Following the acquisition, Novartis AG would hold 2,87,42,147 shares, or 89.93%, in the firm. DSP Merrill Lynch Ltd is acting as the manager to the offer.
The offer by Novartis AG has been made at a premium of 27% to Novartis India’s closing price of Rs275.6 on 24 March.
Since the announcement of the open offer by Novartis AG on 25 March, the scrip of Novartis India has been on an upward swing, gaining nearly 70% on the BSE.