Natco Pharma Rights Issue 2026 At ₹750 Per Share, Record Date October 1 As ₹1,279 Crore Fundraise Opens October 12

Natco Pharma has fixed the price of its ₹1,279 crore rights issue at ₹750 per share, with the offer set to open on October 12 and close on October 22. The pharmaceutical company has fixed October 1 as the record date for determining shareholders eligible to participate in the issue.

Under the approved terms, eligible shareholders will be entitled to two rights shares for every 21 shares held on the record date. Natco Pharma will issue 1.71 crore equity shares through the fundraise, with the ₹750 issue price representing a discount to the company's prevailing market price.

The proceeds will be used across debt repayment, research and development, potential inorganic growth opportunities and general corporate purposes. The board approved the final terms of the issue on September 25 after the company had earlier received in-principle approvals from the NSE and BSE.

Natco Pharma Rights Issue Price And Entitlement Ratio

Natco Pharma will issue 1,70,58,082 fully paid-up equity shares with a face value of ₹2 each at ₹750 per share. The total issue size works out to ₹1,279.36 crore.

The rights entitlement has been set at 2:21. This means an eligible shareholder holding 21 Natco Pharma shares as of the record date will be entitled to subscribe to two additional shares at the issue price.

The ₹750 issue price includes a premium of ₹748 per share over the ₹2 face value. Natco Pharma shares were trading at around ₹843.95 on September 25, putting the rights issue price at a discount to the prevailing market price.

The company had around 17.91 crore equity shares outstanding before the issue. If the rights issue is fully subscribed, the number of outstanding shares will increase by around 1.71 crore.

Natco Pharma Rights Issue Record Date And Key Dates

The record date for the rights issue has been fixed as October 1, 2026. Investors holding shares as of the applicable record date will receive the rights entitlement, subject to the relevant settlement requirements.

The Natco Pharma rights issue will open on October 12 and remain available for subscription until October 22. The period for trading or renunciation of rights entitlements will run from October 12 to October 16.

Shareholders who receive rights entitlements can either subscribe to the additional shares, subject to the terms of the offer, or renounce their entitlements during the permitted period.

The company has also specified that fractional rights entitlements will not be considered. Certain disputed shares and shares held in demat suspense accounts will have the corresponding rights entitlements kept in abeyance until the required documentation is completed.

Natco Pharma Rights Issue: How The ₹1,279 Crore Will Be Used

Debt repayment is expected to account for a significant portion of the funds raised through the issue. Natco Pharma had earlier indicated that up to ₹810.5 crore could be used to repay or prepay borrowings.

This includes ₹300 crore of an SBI term loan, ₹200 crore of an overdraft facility with IndusInd Bank and ₹310.5 crore owed to Bajaj Finance.

The company had also earmarked up to ₹110 crore for research and development activities. The remaining proceeds are intended for inorganic growth opportunities and general corporate purposes, subject to the terms set out in the issue documents.

The rights issue follows the company's earlier board approval for a fundraise of up to ₹1,300 crore. With the final issue terms now approved, Natco Pharma has set the price, entitlement ratio and timetable for the ₹1,279 crore offer.

Also Read - Embassy REIT Raises ₹1,000 Crore Through NCDs From European Bank Under RBI Framework