Natco Pharma is going to demerge its agro business from the core pharmaceutical business. In an exchange filing, the company stated on Thursday that the Board of Directors of the company has given in-principle approval evaluation of the demerger.
In the exchange filing, the company said that the management believes that a demerger of the agro business from the pharmaceutical business shall enable value unlocking of the core pharmaceuticals business and enhance long-term growth.
The company added that the demerger would also provide operational flexibility, dedicated management for respective businesses, and different brand positioning for each legal entity.
Stakeholding in new company
Natco Pharma said that it may retain a small minority stake in the demerged company. The company added that the decision to keep a minority stake in the new company is to support the company in terms of common services, such as Research and Development, patents, and support via Transitional Service Agreements at arm’s length pricing.
The company said that the Board has authorised the management to evaluate the proposed demerger and suggest an optimal capital and shareholding structure.
Nalco Pharma FY25 business
Natco Pharma reported a revenue of Rs 4,784 crore in FY25. The company’s FY25 Profit After Tax (PAT) came in at Rs 1,883 crore. The company said that it employs about 5,000 people globally, including 500 scientists.