Natco Pharma has completed the acquisition of an additional 13.25% equity stake in Adcock Ingram Holdings Proprietary Limited for an aggregate consideration of around ZAR 1.81 billion, equivalent to approximately ₹1,060 crore. With this transaction, Natco Pharma's total shareholding in the South African pharmaceutical company has increased from 35.75% to 49%. The acquisition was executed through Natco Pharma South Africa Proprietary Limited, a wholly-owned subsidiary, following the satisfaction of customary closing conditions and regulatory requirements.

Transaction Details

The board had initially approved the strategic investment to acquire the additional stake in Adcock Ingram. The completion of this deal marks a significant milestone in Natco Pharma's African growth strategy, consolidating its position as a major shareholder. The company first acquired a 35.75% stake in Adcock Ingram during the latter's delisting process in 2025.

Strategic Context

Adcock Ingram is a leading South African healthcare company established in 1891, ranked second in the local pharmaceutical market. It manufactures and distributes a wide range of Prescription, OTC, Consumer, and Hospital products. The company holds a 10% market share in the private sector and is the leader in the OTC pharmaceutical market in South Africa. Natco Pharma, established in 1981, focuses on oncology, cardiology, and neurology, exporting products to over 50 countries.

Natco Pharma received an order from the Assistant Commissioner (ST), Tenali, demanding a total of Rs 60 lakh under the APGST & CGST Act, 2017. The order, dated July 13, 2026, raises a demand for tax, interest, and penalty following an audit for the period from April 1, 2020, to December 17, 2024. The company stated that the matter is currently under evaluation and that it will take the appropriate course of action.

The order specifies a tax demand of Rs 21,34,729, interest of Rs 17,17,806, and a penalty of Rs 21,34,729. The authority cited a lower amount reported under the Reverse Charge Mechanism (RCM) in GSTR 3B as the reason for the violation. The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Natco Pharma clarified that there is no material impact on its financial, operational, or other activities as a result of this order. The company is currently reviewing the demand and its implications before deciding on the next steps.