NATCO Pharma Limited has announced that its Board of Directors has given an in-principle approval to evaluate the demerger of its Agro business into a separate entity.
The decision, taken during the board meeting held today, is aimed at unlocking value for shareholders and driving stronger growth in both the pharmaceuticals and agro segments.
Why This Move?
The management believes that the demerger will:
- Allow sharper focus on the core pharma business.
- Enable operational flexibility for both businesses.
- Provide dedicated management and brand positioning.
- Unlock long-term shareholder value.
As part of the reorganization, NATCO Pharma may retain a minority stake in the new agro-focused company. This will help in sharing common services such as R&D, patents, and transitional support agreements.
What’s Next?
- The management team will evaluate the optimal capital and shareholding structure for the demerger.
- The Board has also authorized the appointment of legal, financial, and valuation advisors to progress the transaction.
- Further updates will be shared with exchanges in line with SEBI’s disclosure norms.
The Board meeting began at 10:00 a.m. and concluded at 10:35 a.m.
Bottom Line
This potential demerger signals a strategic shift by NATCO Pharma to strengthen its pharmaceutical business while giving its agro division the space to grow independently. Investors and stakeholders can expect more clarity once the detailed plan is finalized.
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