Natco Pharma Demerger: Board Approves Split of Agrochemicals Business

Pharmaceutical major Natco Pharma Ltd on March 24 announced that its board has approved a scheme of arrangement to demerge its agrochemicals business into its wholly owned subsidiary, Natco Crop Health Sciences. 

What Will Shareholders Get?

As part of the scheme, shareholders of Natco Pharma will receive shares in the resulting entity in a 1:1 ratio.

The decision was taken during the board meeting held on March 24, with October 1, 2026, set as the appointed date for the demerger. The arrangement involves Natco Pharma (the demerged entity) and Natco Crop Health Sciences (the resulting entity), along with their respective shareholders and creditors.

Under the proposed structure, the agrochemicals business will be transferred on a going concern basis. In return, shareholders will receive one fully paid equity share of ₹2 in the resulting company for every ₹2 equity share held in Natco Pharma.

The company will seek no-objection certificates from the National Stock Exchange of India and BSE. The scheme remains subject to approvals from shareholders, creditors, and the National Company Law Tribunal. Post-implementation, Natco Crop Health Sciences plans to list its equity shares on the stock exchanges.

Shareholding Structure Post Demerger

The demerger will not alter the shareholding pattern of Natco Pharma. Following the completion of the scheme, existing shareholders will directly own around 80% of the resulting company in proportion to their holdings, while Natco Pharma will retain the remaining 20% stake.

Expansion and Rationalisation Moves

In a parallel development, the board approved the incorporation of a new wholly owned subsidiary, Natco Pharma Nigeria, with an investment of up to $100,000. The new entity will focus on expanding the company’s pharmaceutical business in Nigeria.

Additionally, Natco Pharma has decided to liquidate its Australian subsidiary, Natco Pharma Australia. The closure, expected by September 2026, is attributed to a shift in business strategy and rising administrative costs.

Also Read: TVS Motor Company Declared Interim Dividend of ₹12 Per Share: March 31 Set as Record Date 

Business Segments Overview

Currently, Natco Pharma operates across two key verticals, pharmaceuticals and agrochemicals. The pharmaceutical division focuses on developing and marketing formulations and active pharmaceutical ingredients, particularly in oncology, along with therapies spanning cardiology, neurology, hepatology, gastroenterology, and diabetology.

The agrochemicals segment, on the other hand, is involved in the research, manufacturing, and sale of products such as pesticides, insecticides, herbicides, and bio-stimulants. As of March 31, 2025, this segment reported a turnover of ₹60.62 crore, contributing 1.48% to the company’s overall revenue.

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