Natco Pharma Approves ₹1,279 Crore Rights Issue at ₹750 Per Share
Natco Pharma Limited has approved the final terms of its proposed ₹1,279.36 crore rights issue, including the issue price, record date, entitlement ratio and subscription period.
The company’s Board of Directors approved the terms at its meeting held on September 25, 2026, according to a stock-exchange filing.
Natco Pharma will issue up to 1.71 crore equity shares at ₹750 per share to eligible shareholders.
Natco Pharma Rights Issue: Key Details
The company plans to raise up to ₹1,279.36 crore through the rights issue, assuming full subscription.
The key terms are:
- Rights issue size: ₹1,279.36 crore
- Rights shares: 1,70,58,082 equity shares
- Rights issue price: ₹750 per share
- Face value: ₹2 per share
- Premium: ₹748 per share
- Record date: October 1, 2026
- Rights issue opening: October 12, 2026
- Rights issue closing: October 22, 2026
- On-market renunciation period: October 12 to October 16, 2026
- Rights entitlement: 2 shares for every 21 shares held
The issue is being offered to eligible equity shareholders whose names appear on the company’s records as of the October 1, 2026 record date.
2 Rights Shares for Every 21 Shares
Natco Pharma has fixed the rights entitlement ratio at:
2 Rights Equity Shares for every 21 fully paid-up equity shares held on the record date.
For example, an eligible shareholder holding 210 Natco Pharma shares on the record date would have a basic entitlement of 20 rights shares.
Shareholders holding fewer than 21 shares will have zero basic rights entitlement, according to the terms announced by the company. However, such shareholders can apply for additional rights shares and may receive preferential consideration for one additional share, subject to availability and the issue terms.
Fractional entitlements will generally be ignored in calculating the basic rights entitlement.
Rights Issue Price Fixed at ₹750
The rights issue price has been fixed at ₹750 per equity share, including a face value of ₹2 and a premium of ₹748.
At full subscription, the issue will comprise 1,70,58,082 new equity shares.
Natco Pharma currently has 17,91,09,870 outstanding equity shares.
Assuming full subscription, the number of outstanding shares will increase to approximately 19,61,67,952 shares following the issue.
This represents an increase of roughly 9.5% in the number of outstanding shares compared with the pre-issue share count.
Natco Pharma Rights Issue Record Date
The company has fixed October 1, 2026 as the record date for determining shareholders eligible to participate in the rights issue.
Investors should note that entitlement will be determined based on their eligible shareholding on the record date, subject to the final terms and applicable settlement rules.
The Rights Entitlement ISIN is INE987B20018.
Rights Issue Opens on October 12
The subscription window will run for 11 calendar days within the announced period:
Opening date: October 12, 2026
Closing date: October 22, 2026
The on-market renunciation period will run from October 12 to October 16, 2026.
Rights entitlements can therefore become separately tradeable during the specified renunciation period, subject to the applicable process and exchange rules.
What Is a Rights Issue?
A rights issue allows an existing company’s shareholders to subscribe to additional shares in proportion to their existing holdings.
In Natco Pharma’s case, eligible shareholders are being offered 2 additional shares for every 21 shares held at the specified rights issue price.
A shareholder who does not wish to subscribe may have the ability to renounce the rights entitlement during the permitted period, subject to the issue terms.
The Letter of Offer will contain the detailed provisions governing the rights issue, including the treatment of fractional entitlements and other conditions.
Natco Pharma Share Count After Rights Issue
If the rights issue receives full subscription:
Before issue: 17.91 crore shares
New shares: 1.71 crore shares
After issue: 19.62 crore shares
The actual post-issue share count will depend on the final subscription and allotment.
Important Dates for Natco Pharma Shareholders
| Event | Date |
|---|---|
| Record Date | October 1, 2026 |
| Rights Issue Opens | October 12, 2026 |
| Renunciation Period | October 12–16, 2026 |
| Rights Issue Closes | October 22, 2026 |
| Rights Issue Price | ₹750/share |
| Entitlement Ratio | 2 shares for every 21 shares |
What Investors Should Check Before the Issue
Shareholders should carefully read Natco Pharma’s Letter of Offer once it is filed, as it will contain the complete terms of the issue.
Important points to monitor include:
- Purpose and proposed use of the ₹1,279 crore proceeds
- Final basis of allotment
- Treatment of fractional entitlements
- Rights Entitlement trading and renunciation process
- Promoter participation, if applicable
- Post-issue shareholding pattern
- Company’s plans for deploying the capital
- Impact of the additional equity on future earnings per share
The rights issue price should also be assessed in the context of the company’s market price and the applicable rights entitlement value rather than looking at the ₹750 price in isolation.
Bottom Line
Natco Pharma has approved a ₹1,279.36 crore rights issue at ₹750 per share.
The company will issue up to 1.71 crore equity shares, with eligible shareholders entitled to subscribe for 2 shares for every 21 shares held on the October 1 record date.
The rights issue will open on October 12, 2026, and close on October 22, 2026, while the on-market renunciation period will run from October 12 to October 16.
If fully subscribed, Natco Pharma’s outstanding equity shares will increase from approximately 17.91 crore to 19.62 crore.
The next important document for shareholders will be the Letter of Offer, which will provide the detailed terms and disclosures relating to the proposed fund raising.
This article is based on Natco Pharma Limited’s stock-exchange disclosure dated September 25, 2026. The post is for informational purposes only and should not be considered investment advice.
