NATCO Pharma Demerger: Company’s Business Demerger Approved; Investors to Receive Shares of New Entity

The Board of Directors of NATCO Pharma Limited has approved several key strategic decisions, including a Scheme of Arrangement, a business demerger, and international expansion initiatives.

The company has approved the demerger of Natco Crop Health Sciences Limited. Under this scheme, NATCO Pharma’s agrochemicals business will be segregated and transferred to a new entity.

According to the documents (pages 1-3), this demerger will be executed on a “going concern” basis; in exchange, shareholders will receive shares of the new company in a 1:1 ratio. The objective of this move is to drive the pharmaceutical and agrochemical businesses forward with distinct strategic focuses, thereby boosting operational efficiency and growth.

New Subsidiary in Nigeria

As per page 7 of the exchange filing, the company has approved the establishment of a new wholly-owned subsidiary in Nigeria, named “NATCO Pharma Nigeria Limited.” The company intends to invest up to a maximum of US$ 100,000 (approximately ₹83 lakhs) in this venture. This initiative is viewed as an integral part of the company’s strategy for international expansion and market entry into new geographies.

Other Decisions Taken

Additionally, the company has decided to liquidate its Australia-based subsidiary, Natco Pharma Australia Pty Ltd, as continuing its operations under the current business model is no longer considered economically viable.