Natco Pharma to Raise Up to Rs 1,300 Cr Through Rights Issue, Revise Demerger Scheme
Hyderabad: Natco Pharma Limited has approved a proposal to raise up to Rs 1,300 crore through a rights issue of fully paid-up equity shares and decided to make corresponding changes to its proposed demerger scheme after completion of the fund-raising exercise.
The company’s Board of Directors approved the issuance of equity shares with a face value of Rs 2 each to eligible equity shareholders as on a record date to be determined and notified subsequently.
The rights issue will be carried out in accordance with applicable laws, including the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018, and will remain subject to the required regulatory and statutory approvals.
The total amount proposed to be raised through the rights issue will not exceed Rs 1,300 crore. The final number of Rights Equity Shares to be issued will be determined after finalisation of the issue price and the rights entitlement ratio.
To facilitate the fund-raising process, the Board has constituted a Fund-Raising Committee comprising V.C. Nannapaneni as Chairman, Rajeev Nannapaneni as Member and P.S.R.K. Prasad as Member. The committee has also been delegated the necessary powers to give effect to the proposed rights issue.
The Board has approved the Draft Letter of Offer for the issue in accordance with the Companies Act, 2013, SEBI ICDR Regulations and other applicable laws.
Natco Pharma To Revise Proposed Demerger Scheme
Natco Pharma also provided an update on its proposed Scheme of Arrangement (Demerger) involving Natco Pharma Limited as the demerged company and Natco Crop Health Sciences Limited as the resulting company, along with their respective shareholders and creditors.
The scheme had been submitted to the stock exchanges in accordance with Regulation 37 of the SEBI LODR Regulations and the applicable SEBI Scheme Circular, and the company has received Observation Letters from both stock exchanges.
However, the company has not yet filed the demerger scheme and related applications with the National Company Law Tribunal (NCLT).
The proposed rights issue is expected to change Natco Pharma’s capital structure and shareholding pattern, which will consequently require modifications to the existing demerger scheme.
The Board has therefore decided to make the necessary changes to the scheme after completion of the rights issue. Among other objectives, the revised scheme will seek to maintain the share swap ratio at the same level as proposed in the existing scheme, for which the company has already received Observation Letters from both stock exchanges.
Natco Pharma plans to make appropriate filings for the revised scheme with the stock exchanges after completion of the proposed rights issue.
The securities proposed under the fund-raising exercise are equity shares of Rs 2 face value each, and the issuance will be made specifically through a rights issue to eligible shareholders. Disclosures relating to preferential issuance, bonus issue, ADR/GDR or FCCB issuance, debt securities and cancellation or termination of the proposed securities issue have been stated as not applicable.
