Natco Pharma to Invest ₹1400 Cr in Subsidiary, ₹1069 Cr in Adcock Ingram
Natco Pharma's Board approved investing up to ₹1,400 Crores in its South African subsidiary. Additionally, it will acquire a 49% stake in Adcock Ingram for ₹1,069 Crores, increasing its holding from 35.75%. Adcock Ingram reported US$ 423 million topline for 9MFY26. Acquisitions are expected to complete by July 2026.
The substantial investments in both a subsidiary and an associate company represent a significant strategic move that could materially impact Natco Pharma's future financial performance and market presence.
The company is making significant strategic investments to increase its stake in a key international subsidiary and a major South African pharmaceutical company, indicating a positive outlook for growth and profitability.
Natco Pharma Limited's Board of Directors has approved significant strategic investments. The company will invest up to ₹1,400 Crores in its wholly-owned subsidiary, Natco Pharma South Africa Proprietary Limited.
Furthermore, Natco Pharma will acquire 19,618,825 shares of Adcock Ingram Holdings Proprietary Limited, a South African pharmaceutical company. This acquisition, at a price of ZAR 92.50 (₹5.89) per share, will increase Natco's stake in Adcock Ingram from 35.75% to 49%. The total investment for this stake increase is ZAR 1,814,741,312.50, approximately ₹1,069 Crores, excluding associated transaction costs.
Adcock Ingram reported a topline of US$ 423 million with an EBITDA of approximately US$ 59 million for the nine months ending March 31, 2026. Post-acquisition, Natco Pharma will recognize 49% of Adcock Ingram's profit after tax in its financial books. The board meeting, which commenced at 10:20 a.m. and concluded at 11:50 a.m. on July 8, 2026, also approved other business items.
The acquisition of additional shareholding in Adcock Ingram is subject to customary closing conditions and statutory compliances, including approvals under the Foreign Exchange Management Act and South African regulations. The indicative time period for the completion of these acquisitions is before the end of July 2026.
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Natco Pharma Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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