Novartis India experienced a massive rally in today’s trading session, with shares surging nearly 20% to reach an intraday high of 996.50. This sharp upward movement follows a definitive announcement by the Swiss parent company regarding a total exit from its listed Indian subsidiary. The parent company, Novartis AG, has signed a binding agreement to sell its entire 70.68% stake for approximately 1,446 crore. The stake is being acquired by a consortium led by ChrysCapital, alongside WaveRise Investments and Two Infinity Partners. The transaction price for the promoter stake is set at 860.64 per share, which represented a 3.6% premium over the previous day’s closing price. This change in control has triggered a mandatory open offer for public shareholders. The acquiring consortium is now seeking an additional 26% stake from the public at the same price of 860.64 per share. Under the terms of the deal, the company will undergo a complete rebranding, removing all "Novartis" references within 120 days of the transaction's completion. The stock's performance today significantly outpaced the broader market, which is currently navigating high volatility. While Novartis India locked in gains at the upper circuit, the Nifty Pharma index showed more modest movement, trading near the 22,468 level with a gain of approximately 0.4%. Wider market sentiment remains cautious as of February 20, 2026. The Nifty 50 and Sensex opened relatively flat today, following a steep 1,200-point drop in the previous session. Investors are closely monitoring rising geopolitical tensions in the Middle East and Brent crude prices, which have climbed toward 72 per barrel. Despite the exit from the listed entity, the Swiss parent will continue its presence in the country through Novartis Healthcare Private Limited. This entity remains the core hub for the group's research, development, and commercial operations in the region, signaling a strategic shift toward a dedicated R&D and services model rather than a traditional listed commercial structure. The pharmaceutical sector continues to show resilience, with the domestic market recording over 10% value growth in the first month of 2026. Investors are now focused on the transition of management at Novartis India and how the new owners will optimize the company’s established product portfolio.