Natco Pharma rights issue 2026: ₹1,279 crore terms set

Board finalises the rights issue plan

Natco Pharma Limited has approved the detailed terms of its proposed rights issue after its Board of Directors meeting held on September 25, 2026. The company said it plans to raise up to ₹1,279.35 crore (also reported as ₹1,279.36 crore across filings and reports) through an issue of equity shares to existing eligible shareholders. The fundraising plan had been under consideration earlier, and the board’s decision now locks key elements such as price, entitlement ratio, record date, and the issue timetable.

The company had earlier informed BSE that a board meeting would be held on September 25, 2026 to consider and approve multiple matters linked to the rights issue, including the price, payment mechanism, rights entitlement ratio, record date, and timing. Those terms have now been approved and communicated through regulatory filings.

In-principle approvals from stock exchanges

Ahead of finalising the terms, Natco Pharma received in-principle approval for the rights issue from both BSE Limited and the National Stock Exchange of India Limited. The company said these approvals were received on September 21, 2026.

The sequence is relevant for investors tracking regulatory readiness, because in-principle approval is a key step before opening a rights issue. With exchange approvals in place and board-approved terms disclosed, the company has outlined a clear schedule for the issue.

Issue size, price, and share count

Natco Pharma plans to issue up to 1,70,58,082 fully paid-up equity shares of face value ₹2 each. The issue price has been fixed at ₹750 per share, which includes a premium of ₹748 per share.

At full subscription, the issue size aggregates to about ₹1,279.36 crore. Reports also describe the finalised size as aligning with the earlier board-approved cap of up to ₹1,300 crore.

Rights entitlement ratio and eligibility rules

Eligible equity shareholders will be offered shares in the ratio of 2 rights equity shares for every 21 fully paid-up equity shares held as of the record date. Natco Pharma has fixed October 1, 2026 as the record date.

The company also disclosed operational details around fractional entitlements. Fractional rights entitlements will be ignored while computing eligibility. Shareholders holding fewer than 21 shares will receive zero entitlement, although they may apply for additional shares. The company indicated that affected shareholders applying for additional shares may receive preferential consideration for one extra share, subject to availability.

Key dates: record date, subscription window, renunciation

Natco Pharma said the rights issue will open on Monday, October 12, 2026, and close on Thursday, October 22, 2026. The on-market renunciation period is scheduled from October 12 to October 16, 2026.

One report also clarified the practical implication of the record date: shareholders would have to own shares in their demat account on or before September 30 to be eligible as on the October 1 record date.

Impact on equity base if fully subscribed

The company disclosed that it currently has 17,91,09,870 outstanding equity shares prior to the issue. Assuming full subscription of the rights issue, the outstanding equity share capital will increase to 19,61,67,952 shares post-issue.

This change matters for shareholders assessing the post-issue share count and the mechanics of maintaining ownership levels through participation. As with any rights issue, participation is linked to the entitlement ratio and the final number of shares applied for by eligible shareholders.

Use of proceeds outlined in draft letter of offer

Separately, Natco Pharma’s board had earlier approved a rights issue of up to ₹1,300 crore on September 9, 2026, and approved the draft letter of offer.

As reported, the draft letter of offer provided for ₹810.5 crore of debt repayment and ₹110 crore of research and development spending, with the balance earmarked for inorganic and general corporate purposes. These stated purposes provide context on how the company intends to deploy the capital raised, as disclosed in coverage of the filing.

Market snapshot and pricing context

The rights issue price of ₹750 per share has been described as a discount of about 10.8 percent to the stock’s market price of ₹840.65 as of 12:27 p.m. on September 25, 2026. Another mention pegged the discount at around 11 percent.

While the company’s regulatory filing focuses on the terms and schedule, the discount is a key data point that market participants track when evaluating likely participation and trading dynamics during the rights period.

Key facts table

What investors typically track next

With the terms approved, shareholders typically focus on operational milestones: the record date cut-off for eligibility, the application process during the subscription window, and the renunciation period for those choosing to trade their rights entitlement.

For Natco Pharma, the announced schedule provides clear timing for these steps. The company has already indicated how it will treat fractional entitlements and the position of shareholders holding fewer than 21 shares, which helps clarify expected entitlement outcomes.

Conclusion

Natco Pharma has now finalised the structure of its rights issue, including the ₹750 issue price, the 2:21 entitlement ratio, and the timeline from October 12 to October 22, 2026, with October 1 set as the record date. The company has also disclosed the expected increase in outstanding shares if the issue is fully subscribed. The next formal milestones are the record date and the opening of the subscription window, alongside the on-market renunciation period running through October 16, 2026.