On September 25, 2025, NATCO Pharma Limited announced that its Board of Directors has given in-principle approval to evaluate the demerger of its agro business into a separate legal entity. The move aims to unlock greater value in its core pharmaceutical operations while providing enhanced strategic and operational focus across both segments.
The company stated that the proposed reorganisation will allow distinct brand positioning and provide operational flexibility for both businesses. NATCO Pharma expects the demerger to foster long-term growth, support focused leadership, and enable better alignment of each entity’s strategy and resources.
As part of the proposed structure, NATCO may retain a minority stake in the resulting agro business to support shared services such as research and development, patent functions, and other transitional services under arm’s length arrangements.
The Board has authorised management to conduct a comprehensive evaluation of the demerger. This includes assessing capital structure, shareholding, and regulatory compliance. The outcome will be presented to the Audit Committee and Board for further consideration. The company will also appoint consultants, advisors, valuers, and merchant bankers to support the evaluation process.
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NATCO Pharma confirmed that it will make timely and appropriate disclosures under the SEBI Listing Regulations and other applicable laws as developments occur. The Board meeting, where this decision was taken, commenced at 10:00 a.m. and concluded at 10:35 a.m. on September 25, 2025.
On September 25, 2025, NATCO Pharma share price opened at ₹854.00 on NSE, below the previous close of ₹854.20. During the day, it surged to ₹859.25 and dipped to ₹845.00. The stock is trading at ₹850.50 as of 11:19 AM. The stock registered a marginal change of -0.43%.
Over the past week, it has declined by 3.82%, over the past month, it has declined by 1.92%, and over the past 3 months, it has declined by 3.00%.
The Board’s approval to evaluate the demerger of NATCO Pharma’s agro business reflects the company's intent to streamline operations and create long-term value through structural realignment. Investors can expect further clarity once the evaluation and formal recommendations are complete.
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.
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Published on: Sep 25, 2025, 1:44 PM IST
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