Novartis shares up 4% after Swiss-promoter says to cut stake

Shares of Novartis India on Wednesday closed higher by 3.75 percent, adding Rs 68 crore to its market capitalisation, after its Swiss-promoter said it intends to reduce stake in the Indian entity.

Mumbai: Shares of Novartis India on Wednesday closed higher by 3.75 percent, adding Rs 68 crore to its market capitalisation, after its Swiss-promoter said it intends to reduce stake in the Indian entity.

Shares of the drug major, which had surged as much as 10.71 percent during the day, finally ended the day at Rs 598.80, higher by 3.75 percent from its previous closing on the BSE.

The market capitalisation of the company increased by Rs 68 crore to Rs 1,913 crore from Rs 1,845 crore on Tuesday (March 26).

Novartis India Wednesday said it's Swiss-promoter Novartis AG intends to reduce its stake in the Indian entity to enable it to meet Sebi guidelines on the minimum public shareholding in the listed companies.

Novartis AG, Basel has informed the company that it intends to reduce its shareholding in it through the stock exchange mechanism, Novartis India said in a filing to BSE.

As per the shareholding pattern of the company, as on September 30, 2012 Novartis AG had 76.42 stake in Novartis India.

The market regulator, the Securities and Exchange Board of India (SEBI, has made it mandatory for the listed companies to achieve a minimum of 25 percent public shareholding by June this year.

PTI