Natco Pharma has approved the Letter of Offer for its upcoming ₹1,279.36 crore rights issue, following a meeting of its Fund-Raising Committee on September 28, 2026. The company confirmed October 1, 2026, as the record date to determine eligible shareholders for the capital raise.

The board approved a capital raise at an issue price of ₹750 per equity share. This decision follows in-principle approvals from the Bombay Stock Exchange and National Stock Exchange received on September 21, 2026. The subscription period will run from October 12 to October 22, 2026.

Rights Issue Terms

The company will offer shares to eligible equity shareholders in the ratio of 2 rights equity shares for every 21 fully paid-up equity shares held on the record date. Fractional entitlements will be ignored, though shareholders holding less than 21 shares may apply for additional shares subject to availability.

Post-Issue Shareholding

Upon full subscription, the total number of outstanding equity shares will rise to 19,61,67,952 from 17,91,09,870 prior to the issue. The rights entitlements will be tradable on the stock exchanges during the on-market renunciation period from October 12 to October 16, 2026.

Regulatory and Procedural Updates

The board meeting was convened under Regulation 30 and 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also amended its Code of Conduct to regulate trading by designated persons. Ch. Venkat Ramesh, Company Secretary & Compliance Officer, notified the exchanges regarding the outcome on September 25, 2026.

On September 26, 2026, the company filed copies of these newspaper publications with the BSE and NSE pursuant to Regulation 47 of the SEBI LODR Regulations, 2015. These filings serve as formal proof that the statutory notice requirements regarding the record date have been satisfied.

Letter of Offer Approval

The Fund-Raising Committee of the Board approved the Letter of Offer dated September 28, 2026, for submission to SEBI in compliance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The committee meeting commenced at 8:15 pm and concluded at 8:45 pm.

The company has obtained ISIN INE987B20018 for the credit of Rights Entitlements in the demat accounts of eligible equity shareholders as on the record date. This issuance is pursuant to Regulation 77A of the SEBI ICDR Regulations.

Natco Pharma Limited has increased its investment in US-based biotechnology firm eGenesis, Inc. to $24.70 million. The company raised its latest commitment from the previously disclosed $14.00 million to $16.70 million through its wholly owned subsidiaries.

The updated disclosure, filed under Regulation 30 of SEBI (LODR) Regulations, 2015, marks a revision to an earlier intimation dated August 25, 2026. The increase in investment amount and a change in the participating subsidiaries were the primary modifications to the original proposal.

Investment Structure and Subsidiaries

The total investment of $16.70 million will be executed through convertible promissory notes issued by two of Natco's US subsidiaries. The breakdown of the new capital infusion is as follows:

Both instruments carry an interest rate of 8% compounded annually. At the time of completion, no additional shares are being acquired directly; instead, the companies are purchasing debt instruments that may convert into equity at a later stage. The indicative time period for the completion of this acquisition is October 31, 2026.

Strategic Context and Target Profile

eGenesis is a clinical-stage company focused on genome engineering to develop transplantable organs, aiming to address the global shortage of human donors. The company utilizes its eGenesis Genome Engineering and Production (EGEN) Platform to tackle cross-species molecular incompatibilities and viral risks. Key development programs include kidney, liver, and heart transplants.

In March 2024, eGenesis announced the world's first porcine kidney transplant in a living patient, authorized by the US FDA under the Expanded Access pathway. Subsequent transplants in two additional patients reported exceptionally positive outcomes.

Natco's relationship with eGenesis dates back to 2024, when it initially invested $8.00 million through NATCO Pharma (Canada) Inc. The cumulative investment now stands at $24.70 million.

What the Numbers Show

The shift in investment structure highlights a strategic preference for debt-like instruments over immediate equity dilution or direct share purchases. By opting for convertible promissory notes with an 8% annual interest rate, Natco secures a fixed return component while retaining the option for equity conversion later. This structure allows Natco to support the clinical-stage target's cash burn without immediately locking in valuation risks associated with early-stage biotech equities. Furthermore, the distribution of funds across two separate US subsidiaries (Canada and USA entities) suggests a structured approach to managing cross-border regulatory and tax implications for the parent company.