Shares of Novartis India Limited (BSE:500672) hit a multi-year high of INR 1,148, as they rallied 11% on the BSE in February 19, 2024?s intra-day deals after the parent firm announced its intention of a strategic review. Novartis India in an exchange filing said the Board took note of the communication received from Novartis AG (SWX:NOVN), Holding Company & Promoter, regarding their intention to conduct a strategic review to unlock value of their shareholding in the company. Novartis AG held 70.68% per cent stake in Novartis India.

After some deliberations, the board agreed to support Novartis AG, as may be required, in evaluating their strategic options, the company said. Novartis India is primarily engaged in the business of trading of pharmaceuticals. According to media report, Dr. Reddy's Laboratories Limited (BSE:500124) is likely in a race to acquire Novartis AG's stake in Novartis India.

Dr Reddy's plans to acquire the domestic-focused portfolio and may offer controlling premium, CNBCTV18 reported quoting sources. However, Dr Reddy's clarified that the company does not comment on market speculations and there is currently no such event or information which requires a disclosure. The company makes prompt disclosures, as and when any event or information is considered material or warrants such disclosure, Dr Reddy's said.

Meanwhile, shares of Dr Reddy's Laboratories hit a record high of INR 6,452.30, up 2% on the BSE in intra-day trade February 19, 2024.