25 March 2026, Mumbai: The Board of Directors of NATCO Pharma Limited has approved a Scheme of Arrangement to demerge its agrochemicals business into a separate entity, Natco Crop Health Sciences Limited. The decision was taken at the board meeting held on March 24, 2026, in line with regulatory requirements under SEBI’s Listing Obligations and Disclosure Regulations.
The demerger will involve the transfer of the company’s agrochemicals undertaking, comprising research, development, manufacturing, and marketing of pesticides, insecticides, herbicides, and bio-stimulants into the resulting company on a going concern basis. The appointed date for the scheme is October 1, 2026.
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Under the share entitlement ratio, shareholders of NATCO Pharma will receive one equity share of ₹2 each in the resulting company for every one equity share held in NATCO Pharma. There will be no cash consideration involved in the transaction. Post-demerger, shareholders will directly hold about 80% in the new entity, while NATCO Pharma will retain around 20% stake.
The agrochemicals division contributed ₹60.62 crore in turnover in FY2024-25, accounting for 1.48% of the company’s total turnover. The company stated that separating the agrochemicals and pharmaceutical businesses would allow focused management, improved operational efficiency, and better capital allocation for both verticals.
The scheme is subject to approvals from shareholders, creditors, stock exchanges, and the National Company Law Tribunal (NCLT). Upon completion, the resulting company plans to list its equity shares on both BSE and NSE.
In addition to the demerger, the board also approved the incorporation of a wholly owned subsidiary in Nigeria, NATCO Pharma Nigeria Limited, with an investment of up to USD 100,000. The company also plans to liquidate its Australian subsidiary, Natco Pharma Australia Pty Ltd., by September 2026, citing lack of economic viability.
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