Natco Pharma Ltd. Rights Issue: Price, Record Date, Entitlement Ratio And Key Details

The Natco Pharma Ltd. rights issue is proposed at ₹750 per share, with eligible shareholders entitled to two rights equity shares for every 21 fully paid-up equity shares held on the record date. The issue is scheduled to open on October 12, 2026, and close on October 22, 2026.

The pharmaceutical company plans to raise up to ₹1,279.35 crore through the issue, subject to full subscription and the finalisation of the basis of allotment.

Key Terms of the Rights Issue

The rights issue has a clearly defined pricing and entitlement structure. Shareholders need to look at the issue price, ratio and record date together to understand their entitlement.

The principal terms are:

• Issue size: Up to ₹1,279.35 crore
• Rights equity shares offered: Up to 17,058,082 shares
• Face value: ₹2 per equity share
• Issue price: ₹750 per rights equity share
• Premium: ₹748 per Rights Equity share
• Entitlement ratio: 2 Rights Equity shares for every 21 fully paid-up equity shares held as on the Record Date
• Record date: October 1, 2026
• Issue opening date: October 12, 2026
• Issue closing date: October 22, 2026

The ₹750 issue price was around an 11% discount to the company’s market price when the terms were announced.

How the 2:21 Rights Entitlement Works?

Under the Natco Pharma Ltd. rights issue, shareholders whose names appear as eligible holders on the record date receive rights entitlement in the ratio of 2:21.

This means the entitlement is calculated using the number of fully paid-up equity shares held as of October 1, 2026. Shareholders need to refer to their actual credited rights entitlement rather than calculate eligibility solely from their present portfolio position.

The company has also specified that fractional rights entitlements will be ignored when calculating the entitlement.

Shareholders with holdings that do not result in a whole-number entitlement should therefore read the offer documents carefully, particularly the provisions relating to additional applications.

What Happens to Fractional Entitlements?

The treatment of fractional holdings is an important technical point in this issue. A shareholder holding fewer than 21 shares would not receive a whole rights entitlement under the 2:21 ratio.

According to the disclosed terms, fractional entitlements are ignored for the purpose of computing the rights entitlement. However, shareholders affected by fractional calculations may apply for additional shares.

Such applicants may receive preferential consideration for one additional rights equity share, subject to availability and the final basis of allotment.

This distinction matters because entitlement and allotment are not necessarily the same thing.

Record Date And Eligibility

October 1, 2026, has been fixed as the record date for determining eligible shareholders.

The record date establishes which shareholders are entitled to participate in the rights issue. CNBC-TV18 reported that investors would need the relevant shares to be reflected in their demat account before the record date to become eligible under the announced schedule.

The rights entitlement subsequently credited to an eligible investor’s demat account reflects the quantity available under the approved ratio.

Eligibility should therefore be checked through the actual rights entitlement credit and the terms contained in the company’s offer documentation.

Issue Price And Discount

Each rights equity share has been priced at ₹750. This comprises a face value of ₹2 and a premium of ₹748 per share.

When the rights issue terms were announced, the market price was around ₹843.95 per share. With the issue price set at ₹750 per share, the shares were being offered at a discount of about 11% to the prevailing market price at that time.

The discount is based on the market price prevailing around the announcement and should not be treated as a fixed measure throughout the issue period because listed share prices can change.

Natco Pharma Rights Issue Timeline

The offer will remain open for a defined subscription period. Investors need to distinguish the overall issue window from the shorter on-market renunciation period.

The announced schedule is:

• Rights issue opens: October 12, 2026
• On-market renunciation begins: October 12, 2026
• On-market renunciation closes: October 16, 2026
• Rights issue closes: October 22, 2026

On-market renunciation allows an eligible shareholder to transfer or sell the rights entitlement through the stock exchange during the permitted period, rather than using that entitlement to apply for rights shares.

Impact On The Equity Share Base

Before the issue, the company had 17,910,987,000 outstanding equity shares.

If all 17,058,082 rights equity shares are subscribed and allotted, the outstanding equity share base would increase to 196,167,952 shares.

The increase in the number of outstanding shares is relevant when understanding the post-issue capital structure. An existing shareholder who does not participate may see their percentage holding change after completion of the issue, depending on the final allotment.

Exchange Approvals and Listing

The rights issue followed in-principle approvals from BSE Limited and the National Stock Exchange of India. The approvals were received before the final terms of the issue were announced.

Rights shares allotted under the issue are expected to be listed subject to fulfilment of the applicable requirements and completion of the allotment process.

Investors should use the company’s official rights issue page to access the relevant offer documents and issue-related disclosures.

What Shareholders Should Track

The Natco Pharma Ltd. rights issue involves more than simply checking the ₹750 offer price. Shareholders should also keep track of their rights entitlement, the 2:21 ratio, October 1 record date, renunciation deadline and October 22 issue closing date.

The final number of shares allotted will depend on valid applications, additional applications where applicable and the basis of allotment. Reading the formal offer documents is therefore important before participating, renouncing the entitlement or allowing it to lapse.