Natco Pharma's ₹1,279 Cr rights issue is final: 2 shares for every 21 at ₹750, record date October 1
The Letter of Offer is filed and an ISIN obtained for the entitlements. At ₹750, the issue price is 10.1% below the ₹834.25 close — below the stock's entire 52-week range.
₹834.25 Sep 29 · +0.7%, first session after the Letter of Offer
MID-CAP by market cap ≈ ₹14,942 Cr
₹750 10.1% below the last close
≤ ₹1,279.4 Cr
₹12,794 million · ≈8.5% of market cap
2 : 21
record date Oct 1, 2026
≤ 1.71 Cr
17,058,082 · ≈9.5% of 17.91 Cr outstanding
Three filings took the rights issue from approval to a priced offer
Board approves a rights issue of up to ₹1,300 crore; draft Letter of Offer filed the same evening
The Board of Directors, at its meeting on September 9, approved the issuance of fully paid-up equity shares of face value ₹2 each for an amount not exceeding ₹1,300 crore, by way of a rights issue to eligible shareholders as on a record date to be determined. The same evening the company filed the Draft Letter of Offer dated September 9, 2026 with the stock exchanges. Per the outcome filing, this came in furtherance to an intimation dated August 14, 2026; an August 11 update had said the August 14 board meeting would consider fund-raising through equity or other securities.
Read:This set the ceiling (₹1,300 crore) and the instrument (a rights issue, not a QIP or preferential allotment) — the offer would go to existing shareholders in proportion to their holding. Price, ratio and record date were still open at this point.
Board meeting outcome, Sep 9, 2026 (BSE)Board fixes the size at ₹1,279.36 crore and the record date at October 1
At its September 25 meeting, the Board approved the issuance of Rights Equity Shares for an amount not exceeding ₹12,79,35,61,500 — i.e., ₹1,279.36 crore — and, in a separate intimation under Regulation 42, fixed Thursday, October 1, 2026 as the record date for determining shareholders eligible to receive rights entitlements. In-principle approvals for listing the rights shares had been received from NSE and BSE on September 21.
Read:The size came in slightly under the ₹1,300 crore ceiling approved on September 9. With the record date set, the holding that counts is the position as of October 1 — a decision point for anyone weighing whether to be on the register for the entitlement.
Board meeting outcome, Sep 25, 2026 (BSE)Fund Raising Committee approves the Letter of Offer; ISIN obtained for the rights entitlements
In a filing that reached the exchange at 20:52 IST, the company enclosed the Letter of Offer dated September 28, 2026, approved by the Fund Raising Committee and submitted to SEBI under the ICDR Regulations. The cover sets the full terms: up to 17,058,082 equity shares of face value ₹2 at ₹750 per share (a premium of ₹748), aggregating up to ₹12,794 million — i.e., ₹1,279.4 crore — in the ratio of 2 rights shares for every 21 held on the October 1 record date. The company also stated it has obtained ISIN INE987B20018 for crediting rights entitlements to eligible shareholders' demat accounts under Regulation 77A of the SEBI ICDR Regulations.
Read:This is the document shareholders will act on — price, ratio, record date and the full issue calendar are now locked. The Fund Raising Committee comprises Venkaiah Chowdary Nannapaneni (Chairman), Rajeev Nannapaneni and Potluri Sivaramakrishna Prasad.
Fund Raising Committee outcome + Letter of Offer, Sep 28, 2026 (BSE)The arithmetic for a holder: every 21 shares held at the close of October 1 carries an entitlement to 2 new shares at ₹750 each — an outlay of ₹1,500 per lot of 21. At full subscription the issue adds 17,058,082 shares, a 9.5% expansion of the 17.91 crore shares outstanding, and raises up to ₹1,279.4 crore — roughly 8.6% of the ₹14,942 crore market cap at the last close. The ₹750 price is 10.1% below that close of ₹834.25.
The entitlement is not use-it-or-nothing. Per the Letter of Offer, rights entitlements can be renounced — traded on the exchanges until October 16, or transferred off-market so long as they reach the renouncee's demat account before the issue closes. Eligibility has one notable restriction: the offer is made only to shareholders who have provided an Indian address; the issue materials cannot be acted on from the United States. KFin Technologies is the registrar, Kotak Mahindra Bank the banker to the issue, Crisil Ratings the monitoring agency for the proceeds, and NSE the designated stock exchange.
Four weeks from record date to listing
Record date — determines shareholders eligible for rights entitlements
Last date for credit of rights entitlements to demat accounts
Issue opens
Last date for on-market renunciation of rights entitlements
Issue closes — no withdrawal of applications after this date
Finalisation of basis of allotment and allotment (both on or about)
Credit of rights equity shares (on or about)
Listing of rights equity shares (on or about)
Two fine-print points from the issue programme: the Board or the Fund Raising Committee can extend the issue period, but not beyond 30 days from the opening date; and no withdrawal of an application is permitted after the October 22 close. On the other side of the register, the promoter group held 49.42% — 8,85,15,126 shares — as of June 30, 2026. At 2-for-21 that is an entitlement of roughly 84.3 lakh shares, an outlay of about ₹632 crore at the issue price if subscribed in full; promoter participation will show up in the subscription and allotment disclosures.
An issue priced below the entire 52-week range
The last close of ₹834.25 (Sep 29) sits 32.0% below the 52-week adjusted high of ₹1,226.8 (May 12, 2026) and 5.7% above the 52-week low of ₹789 (September 30, 2025). That makes the ₹750 issue price notable: it is below the entire 52-week trading range, so the 10.1% discount to the last close would remain a discount anywhere the stock has traded in the past year. The announcement sequence itself moved the stock only modestly — the sharpest move around it was the +2.8% close on September 23, the first session after the September 22 intimation of the board meeting that fixed the issue's size.
The raise lands after a much smaller quarter
Q4 FY26 net profit includes a tax credit of ₹89.2 Cr (negative tax line as filed).
The raise arrives against a visibly smaller earnings base. Q1 FY27 consolidated revenue of ₹735.2 crore was 44.7% below the ₹1,328.9 crore of Q1 FY26, and net profit of ₹206.5 crore was 57% lower year-on-year; the session in which those results were filed (August 14) closed −5.1%. On use of proceeds, the Letter of Offer's risk factors state that the company proposes to utilise a portion of the issue proceeds for inorganic growth and acquisitions for which the target may not be identified — a stated risk, and the clearest signal in the document about intent. Separately, hours before the Letter of Offer on September 28, the company disclosed an increase in its investment in eGenesis, Inc. from US$14.00 million to US$16.70 million through wholly owned subsidiaries.
The dates that settle the open questions
Oct 1 · record date
The holding at the close of October 1 fixes the entitlement; rights entitlements (ISIN INE987B20018) are to be credited by October 6.
Oct 12–16 · RE trading
On-market renunciation window. The traded price of the entitlements will show what the market pays for the right to buy at ₹750.
On or about Oct 23 · allotment
Basis of allotment reveals the subscription level — including whether the promoter group took up its roughly 84.3 lakh-share entitlement (~₹632 crore at the issue price).
Extension option
The Board or Fund Raising Committee can extend the issue period by up to 30 days from opening; applications cannot be withdrawn after the October 22 close.
For a holder on the register on October 1, the choice set is concrete: subscribe at ₹1,500 per lot of 21 shares held, sell the entitlement on-market by October 16, or let it lapse and absorb the dilution from a share count that grows up to 9.5% at full subscription. The 10.1% discount to the last close — and the fact that ₹750 sits below the past year's entire trading range — frames the first option; the entitlement's traded price from October 12 will put a market value on it.
The proceeds, up to ₹1,279.4 crore, are large relative to the current run-rate — nearly two quarters of Q1 FY27 revenue — and the Letter of Offer flags acquisitions with unidentified targets among the stated uses. What the money ultimately funds, and at what subscription the issue closes, are the questions the October calendar will answer; listing of the new shares is slated on or about October 27.
Informational and educational content only. Not investment advice.