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Natco Pharma will acquire an additional 13.25% stake in South Africa-based Adcock Ingram Holdings Proprietary

ICICIdirect Research 09 Jul 2026 DISCLAIMER

News: Natco Pharma will acquire an additional 13.25% stake in South Africa-based Adcock Ingram Holdings Proprietary Ltd (AIHPL) for an aggregate consideration of ZAR 1.8 billion (around ₹1,069 crore), increasing its shareholding from 35.75% to 49%. The acquisition, expected to be completed before the end of July 2026, aims to expand Natco's footprint in South Africa. The transaction will be funded through cash consideration and is subject to customary closing conditions, FEMA compliance and other regulatory approvals. AIHPL operates across prescription, consumer, OTC and hospital pharmaceuticals.

View: The hike in stake is likely to improve the PAT estimates for FY27 by 5-6% (from ~₹ 705 crore to ₹ 745 crore). However, given the high base of ₹ 1418 crore for FY26 (due to significant Revlimid contribution), the improvement is not that significant. We will keep tab on Natco’s other strategic moves and investments.

Impact: Neutral

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