Natco Pharma Sells 14 Acres of Land for Rs 115.6 Crore in Telangana

Pharmaceutical company Natco Pharma Ltd. has sold 14.38 acres of land located in Mekaguda Gram Panchayat, Nandigama Mandal, Ranga Reddy District, Telangana, for a total consideration of Rs 115.6 crore. The transaction, finalized and completed on November 27, 2024, includes infrastructure costs. 

No Operational Impact

Natco clarified in its regulatory filing that the sale of this property would not affect its business operations, as the land and building were not part of its operational assets. The transaction does not qualify as an undertaking or a substantial part of the company’s assets under Section 180(1)(a) of the Companies Act, 2013.

Confidential Buyer 

The details of the buyer remain undisclosed due to a confidentiality agreement between the parties. Natco talked about how the buyer is not linked to the company’s promoters, promoter group, or related entities, and this transaction is not a related-party deal.

Performance &  Q2 Financials

As of November 28, 2024, Natco Pharma Ltd.’s stock is trading at Rs 1,353.80, showing a 0.19% increase today. Over the past week, the stock has declined by 1.5%, but it has achieved a year-to-date gain of 65.43%

The sale comes on the same day Natco Pharma shares went ex-dividend, offering an interim dividend of Rs 1.50 per share.  For the quarter ending September 30, 2024, Natco Pharma reported an 83% year-on-year increase in net profit, reaching Rs 676 crore, while revenue grew 33% to Rs 1,371 crore. The EBITDA surged 75.7% to Rs 804.2 crore, with margins expanding from 44.4% to 58.66%.

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