Natco Pharma Share Price in Focus as Board Approves ₹1,300 Crore Rights Issue

On September 9, 2026, Natco Pharma Limited's Board of Directors convened to finalise plans for a new equity issue and corporate restructuring, as per the exchange filings.  

The meeting, which lasted from 10:35 a.m. to 11:35 a.m., focused on authorising a rights issue and adjusting the demerger plan. 

Rights Issue Approval 

The board approved a rights issue to raise up to ₹1,300 crore through fully paid-up equity shares with a nominal face value of ₹2 each. The final share volumes and entitlement ratios will be determined once pricing is established. 

Fund Raising Committee Formation 

A Fund-Raising Committee was established to oversee the rights issue. Chaired by Sri V.C. Nannapaneni, the committee includes Sri Rajeev Nannapaneni and Sri P.S.R.K. Prasad, who will manage the regulatory process. 

Offer Documentation and Compliance 

The board approved the Draft Letter of Offer for the rights issue, ensuring compliance with the Indian Companies Act, 2013, and SEBI regulations. This document outlines necessary disclosures before public subscription. 

Corporate Demerger Updates 

Updates on the Scheme of Arrangement for a strategic demerger were provided. This involves separating Natco Pharma Limited from Natco Crop Health Sciences Limited, with the latter becoming a separate entity. 

Initial demerger documentation was submitted to stock exchanges, receiving an Observation Letter. However, formal filings with the National Company Law Tribunal are pending. 

Also check: Pharmaceuticals Stocks

Structural Capital Revisions 

The rights issue will alter Natco Pharma's capital structure, necessitating adjustments to the demerger framework. These updates will be implemented post-rights issue completion to align with new capital metrics. 

Read More: Maruti Suzuki Share Price in Focus; To Raise Prices of Select Models by up to ₹20,000! 

Share Swap Safeguards 

Management aims to maintain the original share swap ratio from initial filings, ensuring consistency with stock exchange observations. The revised scheme will be refiled post-issue. 

Natco Pharma Share Price Performance 

As of September 09, 2026, at 12:19 PM, Natco Pharma share price on NSE was trading at ₹821.40, down by 0.53% from the previous closing price. 

Conclusion 

Natco Pharma's board approved a rights issue to raise ₹1,300 crore and provided updates on a strategic demerger. The rights issue will alter the capital structure, necessitating adjustments to the demerger framework post-completion. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Looking to invest? Open a Demat Account with Angel One and start trading seamlessly.