Natco Pharma board approves ₹1,300 crore rights issue
- Natco Pharma board approves ₹1,300 crore rights issue
- Equity shares of face value ₹2 offered to existing holders
- Demerger scheme requires revision due to capital structure change
- Fund-raising committee led by V.C. Nannapaneni constituted
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Natco Pharma 's board approved a ₹1,300 crore rights issue of equity shares to existing shareholders on September 9, 2026.
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. The draft letter of offer for the rights issue was also approved by the board.
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 |
|---|---|---|---|---|---|
| +0.58% | -2.20% | -9.40% | -18.55% | -1.84% | -14.77% |
How will the ₹1,300 crore capital raise specifically impact Natco Pharma's debt-to-equity ratio and overall credit rating?
What is the expected timeline for revising and resubmitting the demerger scheme to the NCLT following the completion of the rights issue?
Will the rights issue dilute the current shareholding percentage of major promoters, and how might this affect corporate governance dynamics?
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