Natco Pharma Limited shareholders approved a proposal to raise funds of up to ₹2,000 crore through various equity instruments. The decision was taken during the 43rd Annual General Meeting held on September 30, 2026.

The special resolution allows the company to issue securities via preferential allotment, rights issue, private placement, or qualified institutional placement. This flexibility enables the board to choose the most suitable method for capital infusion in one or more tranches.

Dividend and Financials Adopted

The meeting confirmed three interim dividends paid during FY26, aggregating to ₹5.00 per share. Shareholders also adopted the audited annual financial statements for the fiscal year 2025-26. The statutory auditors' report was unqualified, with no adverse observations noted.

Key Resolutions Passed

The following items were considered and approved by the members:

Governance and Attendance

The meeting was conducted through video conference with e-voting facilities available from September 27 to September 29, 2026. A total of 51 members participated via remote e-voting and live voting during the session. The Chairman and Managing Director, V.C. Nannapaneni, presided over the proceedings, while Vice Chairman and CEO Rajeev Nannapaneni presented the Chairman's speech.

The results of the voting are scheduled to be declared within two working days of the meeting's conclusion.

Voting Results Detail

Official voting results released on September 30, 2026, confirmed that all resolutions passed with requisite majorities. Out of 4,22,879 shareholders as of the cut-off date of September 25, 2026, votes were cast on all agenda items.

Resolution 1: Adoption of Financial Statements

Resolution 2: Confirmation of Interim Dividends

Resolution 3: Re-appointment of Director

P.S.R.K. Prasad was re-appointed as a Director liable to retire by rotation. Institutional investors showed slight dissent compared to other resolutions.

Resolution 4: Ratification of Cost Auditor Remuneration

Resolution 5: Fund Raise Proposal

The special resolution to raise up to ₹2,000 crore received significant support, though institutional investors registered higher dissent than on other matters.

What the Numbers Show

While all resolutions passed comfortably, the voting pattern reveals a divergence in investor sentiment regarding capital expansion. Dissent from institutional holders peaked at 4.21% for the ₹2,000 crore fund raise proposal (Resolution 5), compared to just 0.86% for the adoption of financial statements (Resolution 1) and 0.00% for dividend confirmation (Resolution 2). This suggests that while shareholders support current operational performance and payouts, there is cautious skepticism among institutional investors regarding the scale and method of future equity dilution.

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.