Natco Pharma’s Board of Directors has given in-principle approval to evaluate the demerger of its Agro business. The demerger aims to unlock the core business value of pharmaceuticals, enhance long-term growth, and provide operational flexibility. The company may retain a small minority stake in the resulting entity, supporting common services. The board has authorized management to evaluate the proposed demerger and consider optimal capital structure.
Agro Business Demerger
Natco Pharma’s Board has approved evaluating the demerger of its Agro business as of September 25, 2025. This decision is aimed at creating enhanced value and operational efficiency.
Strategic Rationale
The primary goal of this demerger is to unlock value in the core pharmaceutical business and enable long-term growth. By separating the Agro business, Natco Pharma expects to achieve more focused management and improved brand positioning for both entities.
Operational Restructuring
The demerger is expected to provide greater operational flexibility, allowing for more dedicated management of each business segment. Post-demerger, the company may retain a small minority stake in the resulting Agro business to support common services like R&D and patents.
Next Steps
The management is authorized to undertake a detailed evaluation of the proposed demerger, including suggesting an optimal capital and shareholding structure. Consultants and advisors will be appointed to evaluate the transaction and ensure progress. The Board will consider the matter and give approval at a later date.
Source: BSE
