Novartis India Ltd share values have climbed by as much as 10.7% after its parent firm, Novartis AG issued a statment that it would be selling off its shareholdings in its Indian unit. The sales would be conducted through block sales in stock exchanges in order to reduce its overall exposure in the subsidiary.
The divestment of its shares in Novartis India is intended to follow regulations instituted that at least 25% of shares in private companies must be held by public shareholders by June 2013. In order to comply with the order, Novartis India needs to sell 1.42% stake at the share values prior to the deadline provided by the regulations.
The share values of Novartis India gained 2.5% after declining to their lowest levels since May 17, 2010.
On another front, the Supreme Court of India is set to decide by the 1st of April on whether or not Novartis AG's cancer drug Gilvec deserves to be issued a patent in India.
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