Natco Pharma Limited has successfully concluded its postal ballot process for the reappointment of four key directors, with results announced on March 25, 2026. The pharmaceutical company conducted the voting process entirely through electronic means, demonstrating strong shareholder support across all proposed resolutions.

Postal Ballot Process Details

The postal ballot was conducted in compliance with Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The comprehensive voting process spanned over a month, with specific timelines established for shareholder participation.

Director Reappointments

All four directors were successfully reappointed with effect from April 1, 2026, following the overwhelming approval from shareholders. The reappointments strengthen the company's leadership continuity and strategic direction.

Voting Results Summary

The postal ballot results demonstrated exceptional shareholder confidence in the company's leadership, with all four special resolutions receiving approval rates exceeding 98%. The voting participation was robust, with significant engagement from both institutional and retail investors.

Resolution-wise Approval Rates

Shareholder Participation Analysis

The voting process witnessed substantial participation across different shareholder categories. Promoter and promoter group shareholders showed unanimous support with 100.00% approval across all resolutions, while institutional and retail investors also demonstrated strong confidence in the proposed reappointments.

Category-wise Voting Pattern

Regulatory Compliance

The postal ballot process was conducted under the supervision of CS Kiran Kumar Bodla of BK & Associates, Company Secretaries, who served as the appointed Scrutinizer. The process adhered to all applicable provisions of the Companies Act, 2013, and SEBI regulations, ensuring transparency and fairness in the voting mechanism. The company utilized the services of National Securities Depository Limited (NSDL) for the electronic voting platform, facilitating seamless shareholder participation.

NATCO Pharma Limited has announced that its board of directors approved a comprehensive scheme of arrangement for the demerger of its agrochemicals business into Natco Crop Health Sciences Limited during their meeting held on March 24, 2026. The board also approved the incorporation of a new subsidiary in Nigeria and the liquidation of its Australian subsidiary.

Scheme of Arrangement Approval

The board of directors formally approved the scheme of arrangement between NATCO Pharma Limited and Natco Crop Health Sciences Limited under Sections 230 to 232 of the Companies Act, 2013, after considering recommendations from the Audit Committee and Committee of Independent Directors. The appointed date under the scheme is October 1, 2026.

Financial Performance of Demerged Division

The agrochemicals business division recorded a turnover of ₹60.62 crore as of March 31, 2025, representing 1.48% of the company's total turnover. The demerger involves transferring the entire agrochemicals undertaking, including business operations, assets, and liabilities, to the resulting company on a going concern basis.

Business Rationale and Strategic Benefits

The board believes that the risk and reward associated with pharmaceutical and agrochemicals business verticals are different. The demerger aims to segregate the agrochemicals undertaking to facilitate focused growth, operational efficiencies, and business synergies. The company intends to retain 20% shareholding in the resulting company to continue offering support to the agrochemicals business during its early growth stages.

Shareholding Structure Post-Demerger

Following the scheme implementation, shareholders of the demerged company will directly hold approximately 80% in the resulting company, proportionate to their existing shareholding. The remaining 20% stake in the resulting company will be retained by NATCO Pharma Limited, ensuring continued strategic support for the agrochemicals business.

Subsidiary Operations Restructuring

The board approved the incorporation of NATCO Pharma Nigeria Limited as a wholly owned subsidiary with an investment not exceeding USD 100,000. The new subsidiary will operate in the pharmaceuticals sector. Simultaneously, the board decided to liquidate Natco Pharma Australia Pty Ltd due to lack of economic viability and to avoid administrative costs, with closure expected by September 2026.

Regulatory Compliance and Next Steps

The company will seek no-objection letters from NSE and BSE pursuant to Regulation 37 of SEBI LODR Regulations. The scheme requires approvals from shareholders, creditors, and the National Company Law Tribunal. Upon scheme effectiveness, Natco Crop Health Sciences Limited will apply for listing on both stock exchanges. The board meeting commenced at 2:45 PM and concluded at 4:10 PM on March 24, 2026.