Natco Pharma Limited’s Board of Directors has approved a rights issue aimed at raising capital up to ₹1,300 crore. The issue will be for fully paid-up equity shares with a face value of ₹2 each, offered to eligible shareholders. The company also addressed an update on its scheme of arrangement (Demerger) with Natco Crop Health Sciences Limited and confirmed the formation of a Fund-Raising Committee. The rights issue is expected to impact the company’s capital structure.
Natco Pharma Board Approves Capital Raise
The Board of Directors at Natco Pharma Limited, in its meeting held on September 9, 2026, has given its approval for a significant capital-raising initiative through a rights issue. This move is set to infuse up to ₹1,300 crore into the company. The proposed issuance will consist of fully paid-up equity shares, each with a face value of ₹2, to be offered to the eligible equity shareholders of the Company as of a to-be-determined record date.
Details of the Rights Issue
The total amount to be raised through this rights issue is not to exceed ₹1,300 crore (Rupees One Thousand and Three Hundred Crore only). This capital infusion will be conducted in compliance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The company also confirmed the constitution of a Fund-Raising Committee, comprising Sri V.C. Nannapaneni (Chairman), Sri Rajeev Nannapaneni (Member), and Sri P.S.R.K. Prasad (Member), to oversee the process and grant necessary powers.
Scheme of Arrangement Update
In addition to the rights issue, the Board provided an update on the ongoing scheme of arrangement (Demerger) between Natco Pharma Limited and its subsidiary, Natco Crop Health Sciences Limited. The company has received observation letters from the stock exchanges regarding the submitted scheme. However, the scheme and related applications have not yet been filed with the Hon’ble National Company Law Tribunal. The proposed rights issue is expected to necessitate consequential changes to this scheme to appropriately maintain the share swap ratio.
Impact on Capital Structure
The fund raising via the rights issue is anticipated to lead to a change in Natco Pharma’s capital structure and shareholding pattern. The company plans to make appropriate filings for a revised scheme post-completion of the rights issue, ensuring alignment with the regulatory approvals already received.
Source: BSE
