NATCO Pharma Receives ₹4,92,25,923 NPPA Demand Notice for Alleged Drug Overcharging

1 min read     Updated on 15 May 2026, 01:37 PM
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NATCO Pharma Limited received a demand notice from the National Pharmaceutical Pricing Authority (NPPA) dated 12th May, 2026, directing the company to deposit ₹4,92,25,923 covering overcharge amount, penalty, and interest for alleged overcharging of 2 drugs between April 2023 and November 2023. In an updated filing on 15th May, 2026, the company disclosed a delay in its initial submission due to technical and procedural issues, while affirming no material impact on its financial or operational activities.

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NATCO Pharma Limited has disclosed the receipt of a demand notice from the National Pharmaceutical Pricing Authority (NPPA), New Delhi, dated 12th May, 2026. The disclosure was made by Ch. Venkat Ramesh, Company Secretary and Compliance Officer, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 updated on January 30, 2026.

Demand Notice Details

The demand notice was issued under para 15 of the Drugs Price Control Order, 2013 (DPCO), directing NATCO Pharma to deposit a total amount of ₹4,92,25,923, which comprises the overcharge amount, penalty, and interest. The notice alleges overcharging for 2 drugs covering the period between April 2023 to November 2023. The following table summarises the key details of the regulatory action as disclosed by the company:

Parameter: Details
Authority: National Pharmaceutical Pricing Authority, New Delhi
Nature of Action: Demand Notice under para 15 of Drugs Price Control Order, 2013 (DPCO)
Amount Demanded: ₹4,92,25,923 (includes overcharge amount, penalty and interest)
Date of Demand Notice: 12th May, 2026
Date of Receipt: 12th May, 2026
Alleged Violation: Overcharging for 2 drugs
Period of Alleged Overcharging: April 2023 to November 2023
Financial Impact: No material impact on financial, operational, and other activities

Disclosure Delay

In its updated filing dated 15th May, 2026, NATCO Pharma acknowledged a delay in the submission of the initial disclosure, attributing it to technical issues and procedural delays in the flow of information. The company confirmed that it has since complied with the disclosure requirements under SEBI (LODR) Regulations, 2015 and submitted the necessary information to the stock exchanges. NATCO Pharma also stated that it shall take necessary steps to avoid recurrence of such delays in future.

Company's Assessment of Impact

NATCO Pharma has stated that the demand notice has no material impact on the financial, operational, or other activities of the company. The disclosure was made in accordance with applicable regulatory requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Historical Stock Returns for Natco Pharma

1 Day5 Days1 Month6 Months1 Year5 Years
-0.44%+3.80%+11.31%+47.55%+44.84%+29.29%

Will NATCO Pharma contest the NPPA demand notice legally, and what is the likely timeline for resolution of such regulatory disputes in India's pharmaceutical pricing framework?

Could this NPPA action signal a broader regulatory crackdown on drug overcharging across the Indian pharmaceutical industry, potentially affecting other mid-cap pharma companies?

How might repeated NPPA demand notices or escalating regulatory scrutiny impact NATCO Pharma's pricing strategy and profit margins on essential medicines going forward?

NATCO Pharma Files SEBI Substantial Acquisition Disclosure for FY26

1 min read     Updated on 30 Apr 2026, 05:46 AM
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NATCO Pharma Limited filed mandatory SEBI disclosures under Regulation 31(4) for FY26, with promoter Sri V.C. Nannapaneni confirming that promoter group shares were not encumbered or pledged during the financial year ended March 31, 2026. The regulatory filing was submitted to BSE and NSE on April 3, 2026, demonstrating the company's compliance with substantial acquisition disclosure requirements.

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Natco pharma Limited has submitted mandatory disclosures under SEBI regulations for the financial year ended March 31, 2026. The pharmaceutical company filed the required documentation with both BSE and NSE on April 3, 2026, fulfilling its regulatory obligations under the substantial acquisition framework.

Regulatory Filing Details

The disclosure was filed under Regulation 31(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Company Secretary and Compliance Officer Ch. Venkat Ramesh submitted the filing on behalf of the company to both stock exchanges.

Filing Parameter: Details
Filing Date: April 3, 2026
Regulation: SEBI Regulation 31(4)
Financial Year: Ended March 31, 2026
Authorized Signatory: Ch. Venkat Ramesh

Promoter Group Confirmation

Sri V.C. Nannapaneni, Promoter of NATCO Pharma, provided a separate confirmation dated April 4, 2026, addressing the encumbrance status of promoter holdings. The confirmation was submitted on behalf of himself, other Promoters, Members of the Promoter Group, and Persons Acting in concert.

Share Encumbrance Status

The promoter group confirmed that shares held in NATCO Pharma Limited were not encumbered or pledged during the financial year ended March 31, 2026. This confirmation covers:

  • Direct shareholdings by promoters
  • Indirect shareholdings by promoter entities
  • Holdings by Members of the Promoter Group
  • Shares held by Persons Acting in concert

Corporate Governance Compliance

The filing demonstrates NATCO Pharma's adherence to SEBI's transparency requirements for substantial shareholding disclosures. The company maintains its registered office at 'NATCO HOUSE', Road No. 2, Banjara Hills, Hyderabad, and continues to fulfill its listing obligations on both BSE and NSE.

The disclosure was also shared with the company's Audit Committee as part of internal governance protocols, ensuring comprehensive compliance with regulatory frameworks governing substantial acquisitions and takeovers in the Indian capital markets.

Historical Stock Returns for Natco Pharma

1 Day5 Days1 Month6 Months1 Year5 Years
-0.44%+3.80%+11.31%+47.55%+44.84%+29.29%

Will NATCO Pharma's clean promoter shareholding status attract potential strategic investors or acquisition interest in the upcoming quarters?

How might NATCO Pharma's strong governance compliance position the company for future fundraising or expansion plans in FY2027?

Could the absence of pledged promoter shares indicate upcoming corporate actions such as bonus issues or stock splits?

More News on Natco Pharma

1 Year Returns:+44.84%