Pharmaceutical company Natco Pharma Ltd on Tuesday (March 24) said its board has approved a scheme of arrangement to demerge its agrochemicals business into its wholly-owned subsidiary Natco Crop Health Sciences Ltd, with shareholders set to receive shares in the resulting company in a 1:1 ratio.
The decision was taken at the board meeting held today, March 24. The appointed date for the scheme is October 1, 2026. The scheme is between Natco Pharma Ltd, referred to as the demerged company, and Natco Crop Health Sciences Ltd, the resulting company, along with their respective shareholders and creditors.
Under the arrangement, the agrochemicals undertaking of Natco Pharma will be transferred to Natco Crop Health Sciences Ltd on a going concern basis. In consideration, the resulting company will issue one fully paid-up equity share of ₹2 each for every one fully paid-up equity share of ₹2 held in Natco Pharma.
Also Read: NATCO Pharma board to consider agrochemicals demerger on March 24
Natco Pharma will seek no-objection letters from the National Stock Exchange of India and BSE Ltd. The scheme is subject to approvals from shareholders, creditors and the National Company Law Tribunal. Following implementation, the resulting company will apply for listing of its equity shares on the stock exchanges.
Natco Pharma currently operates two business verticals: pharmaceuticals and agrochemicals. The pharmaceutical division focuses on development, manufacturing and marketing of finished dosage formulations and active pharmaceutical ingredients, particularly in oncology, along with therapies for cardiology, neurology, hepatology, gastroenterology and diabetology.
The agrochemicals division is engaged in research, development, manufacturing and marketing of products such as pesticides, insecticides, herbicides and bio stimulants. The turnover of the agrochemicals division stood at ₹60.62 crore as of March 31, 2025, accounting for 1.48% of the company’s total turnover for the financial year ended March 31, 2025.
Also Read: Natco Pharma rolls out ‘most affordable’ semaglutide in India; check prices here
There will be no change in the shareholding pattern of the demerged company. After the scheme becomes effective, shareholders of Natco Pharma will directly hold about 80% in the resulting company in proportion to their shareholding in the demerged company, while the remaining about 20% stake will be held by Natco Pharma.
The board also approved the incorporation of a wholly-owned subsidiary in Nigeria named Natco Pharma Nigeria Ltd, with an investment not exceeding $100,000 in cash. The proposed entity will operate in the pharmaceuticals business and will be wholly owned by Natco Pharma.
Separately, the company approved the liquidation of Natco Pharma Australia Pty Ltd, its wholly-owned subsidiary in Australia. The closure is expected to be completed by the end of September 2026 due to a change in business model and administrative costs.
Shares of Natco Pharma Ltd ended at ₹948.00, up by ₹20.25, or 2.18%, on the BSE today, March 24.
Also Read: Natco Pharma shares gain 3% after launching drug in the US for multiple myeloma treatment
(Edited by : Shoma Bhattacharjee)
First Published:Â Mar 24, 2026 7:01 PM IST
