Private equity firm ChrysCapital has acquired a 70.68% stake in the listed pharmaceutical trading and distribution company Novartis India Ltd (NIL) and has appointed Vikas Gupta as the new chief executive and managing director.
While the financial details of the deal haven't been disclosed, the transaction is pegged at about ₹1,446 crore, a person with direct knowledge of the deal said on condition of anonymity. The deal was first announced in February.
With this transaction, NIL, previously held by Swiss multinational Novartis AG, will adopt a new name and corporate identity to mark the company’s separation from its previous owners and the beginning of a new era, the companies said in a statement on Thursday.
“With ChrysCapital’s backing, we have the resources and focus to grow our portfolio with purpose, reach more patients, and build on what this organization has always stood for,” Gupta said.
NIL has also inducted Ramesh Ramadurai, Suchita Sharma, and Shashank Sinha to the board as independent directors.
In February, Novartis clarified that it will continue its presence in India through Novartis Healthcare Pvt. Ltd (NHPL), a wholly owned subsidiary of the Novartis group in the country.
NHPL includes the commercial arm of Novartis in India, the Novartis Corporate Centre in Hyderabad, and research and development teams that currently conduct clinical trials at more than 300 sites in the country.
NIL is an independent public company listed in India and is separate from NHPL. The transfer of Novartis AG shareholding in NIL will not impact NHPL operations, the company had said.
ChrysCapital's entry into pharma
The acquisition marks ChrysCapital's first majority-controlled investment in the Indian pharmaceutical sector and reflects the firm's strong conviction in the long-term growth potential of the country's branded pharmaceuticals market.
“Combined with NIL's legacy brands and market standing, ChrysCapital believes the foundation for long-term value creation is firmly in place,” Kshitij Sheth, managing director of ChrysCapital Advisors, added.
The transaction brings one of the country's longstanding pharmaceutical businesses under dedicated private equity ownership, with the ambition to build a leading branded-generics platform for the country.
Building on a proven track record in healthcare investments, ChrysCapital aims to leverage its sector expertise and extensive network to support NIL's next phase of growth and strengthen its position as a leading pharmaceutical business.
With a legacy spanning several decades, NIL has a portfolio of brands that operate across key therapeutic areas, including pain management, calcium supplementation, gynaecology, neurosciences, and transplant immunology. The brands include Voveran, Calcium Sandoz, Tegrital, etc.
Kotak acted as the exclusive financial advisor, and Ernst & Young advised Novartis AG on financial and tax due diligence. Alvarez & Marsal, Dhruva Advisors and Price Waterhouse & Co. were the financial and tax advisors for ChrysCapital.