Natco Pharma Limited Buyback: Know Before You Invest

Natco Pharma Limited has revealed plans to buy back fully paid-up equity shares with a face value of Rs 2 each, in compliance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended (Buyback Regulations), through a stock exchange filing. The daily report, submitted in accordance with Regulation 18(i) of the Buyback Regulations, indicates that 4,300 equity shares were bought back on April 3, 2023, at an average purchase price of Rs 576.22.

Established in 1981, Natco Pharma Limited is a research-driven, vertically integrated pharmaceutical firm specialising in the development, production, and marketing of finished dosage formulations (FDF) and active pharmaceutical ingredients (APIs). The company primarily targets niche therapeutic areas and sophisticated products, marketing and distributing its offerings in over 40 countries, including the United States, India, and Europe.

In addition to its direct operations, Natco Pharma conducts business in key regions through subsidiary companies.

Company details

Founded by VC Nannapaneni in 1981 as a private enterprise, Natco Pharma set out to research, develop, manufacture, and market pharmaceutical substances and finished dosage forms for both the Indian and international markets. The company initiated operations in 1984 in Andhra Pradesh and, in its first year, achieved sales of Rs 0.5 million. Cardi cap, an anti-anginal drug, was Natco Pharma’s first product.

Since then, the company has launched numerous dosage forms across various segments, including cardiovascular, anti-cold, anti-asthmatic, and antibiotic. In 1994, Natco Pharma ranked 82nd in sales among Indian pharmaceutical companies and gained recognition as one of India’s largest contract manufacturers. Notable clients include Ranbaxy, Dr Reddy’s Laboratories, and John Wyeth.

Natco Pharma expanded when three companies – Natco Parenterals, Dr Karanth Pharma Labs, and Natco Laboratories – merged. Today, the company operates four manufacturing facilities with around 1,500 employees. Originally starting as a single unit with 20 employees, Natco now utilises online data analysis and decision-making tools. Natco leverages its accumulated experience to propel its plans as a global enterprise.

Natco Pharma produces a wide range of branded and generic dosage forms, bulk actives, and intermediates for both Indian and international markets. Its product offerings include:

• Diltiazem
• Omeprazole
• Lansoprazole
• Isosorbides
• Sumatriptan succinate
• Ondansetron
• Sertraline
• Granisetron
• Paroxetine
• Newer Quinolones and fourth-generation Cephalosporins

Natco Pharma Buyback 2023 Detail

Company Financials (In Crore)

The Stock price at BSE (in preceding 3 months)

Stock price at NSE (in preceding 3 months)

The Objective of the Buyback

The buyback is being carried out for several purposes. First, it enables the company to return excess cash to its shareholders who own equity shares. Second, the buyback may enhance the return on equity by decreasing the equity base. Lastly, the buyback provides options for shareholders holding the company’s equity shares. They can either participate and receive cash in exchange for their equity shares or opt not to participate, resulting in an increased shareholding percentage following the Buyback offer.

How to Apply

Wait for the buyback to open for subscription, then click on this link to apply for the Natco Pharma Limited Buyback with Bigul https://www.bonanzaonline.com/. 

How to Check Allotment Status

The registrar for Natco Pharma Buyback is Venture Capital And Corporate Investments Pvt Ltd. To check your allotment status, please click on this link https://www.vccipl.com

FAQs

1. What is the price for Natco Pharma Buyback 2023?

The price set for Natco Pharma Buyback 2023 is Rs 700 per share. The buyback opens on March 21, 2023, and closes on September 20, 2023.

2. How can I obtain the Tender Form for Natco Pharma Buyback 2023?

In the case of an open market offered through the stock exchange, there is no Tender Form concept. Any equity shareholder holding Natco Pharma Buyback 2023 equity shares can participate in the buyback offer via their stockbroker.

3. How can I participate in Natco Pharma Buyback 2023?

Equity shareholders holding shares in Demat form can participate in the buyback offer through their stockbroker. Physical shareholders can only participate once their shares are converted to a Dematerialised form.

Shareholders must inform their broker about the number of equity shares they want to sell. The broker places a sell order when the company places a buy order for the buyback. The trade is executed at the offer price or less only if the shareholder’s offered price matches the company’s buy order.

4. What is the purpose of Natco Pharma Buyback 2023?

The buyback is undertaken for the following reasons:

1. It helps the company return surplus cash to its shareholders holding equity shares.
2. It may improve the return on equity by reducing the equity base.
3. It allows shareholders holding equity shares to participate and receive cash instead of equity shares or not to participate and enjoy an increased shareholding percentage after the Buyback offer.