Natco Pharma board approves ₹1,300 crore rights issue
- Natco Pharma board approved ₹1,300 crore rights issue on September 9, 2026
- Draft letter of offer for the rights issue was also approved by the board
- Fundraising replaces earlier broader mandate for equity or other securities
- Pending demerger scheme for Natco Crop Health Sciences must be revised
*this image is generated using AI for illustrative purposes only.
Natco Pharma 's board approved a ₹1,300 crore rights issue of equity shares to existing shareholders on September 9, 2026. The draft letter of offer was also approved.
Rights issue details
The company specified that the fundraising will be executed through a rights issue, replacing the earlier broader mandate for equity or other securities. The shares will have a face value of ₹2 each. The final number of shares and the issue price will be determined later, along with the record date for eligibility.
| Parameter | Details |
|---|---|
| Company | Natco Pharma |
| Action | Board approved rights issue |
| Amount | Up to ₹1,300 crore |
| Instruments | Equity shares (face value ₹2) |
| Eligibility | Existing equity shareholders |
A Fund-Raising Committee comprising Chairman V.C. Nannapaneni, Rajeev Nannapaneni, and P.S.R.K. Prasad was constituted to oversee the process.
Impact on demerger scheme
The rights issue is expected to alter the company's capital structure and shareholding pattern. Consequently, Natco Pharma must revise its pending Scheme of Arrangement involving the demerger of Natco Crop Health Sciences Limited.
The company has received observation letters from stock exchanges regarding the original scheme but has not yet filed it with the National Company Law Tribunal. The board decided to update the scheme post-completion of the rights issue to maintain the originally proposed share swap ratio. Revised filings will be submitted to the exchanges after the capital raise is complete.
Historical Stock Returns for Natco Pharma
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.16% | +2.25% | -2.40% | -14.85% | +4.77% | -5.94% |
How might the ₹1,300 crore capital raise impact Natco Pharma's debt-to-equity ratio and overall financial leverage in the coming fiscal year?
What specific strategic initiatives or R&D pipelines is Natco Pharma likely to fund with this equity infusion?
Could the revision of the demerger scheme for Natco Crop Health Sciences delay its regulatory approval or affect the timeline for the separation?
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