3.05 (0.33%) Natco Pharma has received in-principle approval to evaluate the demerger of the Agro business of the company into a separate entity. With this move, the company aims to unlock value of the core business (pharmaceuticals) and enhance long-term growth. Further, it also provides operational flexibility, focused and dedicated management (for respective businesses), different brand positioning for each legal entity. The board of directors of the company in their meeting held on September 25, 2025, have approved the same.
As a part of the proposed reorganization, the company may retain a small minority stake in the resulting company. This is to support the company in terms of common services such as R&D, Patents, etc. Support via Transitional Service Agreements (TSAs) at arm’s length pricing. Further, the board has authorized the management to undertake detailed evaluation of the proposed demerger suggesting optimal capital & shareholding structure.
Natco Pharma was promoted as a private company to be in the business of research, developing, manufacturing and marketing of pharmaceutical substances and finished dosage forms for Indian and International markets.