This Low PE Pharma Stock Approves Rs 1,400 Crore South Africa Expansion; Stake in Adcock Ingram to Rise to 49%
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NATCO Pharma approved investments of up to Rs 1,400 crore to expand its South African operations, including increasing its stake in Adcock Ingram Holdings from 35.75 per cent to 49 per cent.
✨ Key Takeaways
On Wednesday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 0.73 per cent to 24,219.55. Amid the broader market weakness, NATCO Pharma share price traded at Rs 994.15, up 1.02 per cent from the previous close after the company's Board approved investments of up to Rs 1,400 crore to strengthen its presence in South Africa
NATCO to Increase Stake in Adcock Ingram
NATCO Pharma's Board has approved the acquisition of 19,618,825 shares of Adcock Ingram Holdings Proprietary Limited (AIHPL) at ZAR 92.50 per share, amounting to ZAR 1.81 billion, equivalent to approximately Rs 1,069 crore at the prevailing exchange rate, excluding transaction-related costs.
Upon completion of the transaction, NATCO's shareholding in the South African pharmaceutical company will increase from 35.75 per cent to 49 per cent. The acquisition is expected to be completed before the end of July 2026, subject to customary closing conditions and regulatory approvals. Following the transaction, NATCO will recognise 49 per cent of Adcock Ingram's profit after tax in its financial statements.
Board Approves Investment in South African Subsidiary
The Board also approved an investment of up to Rs 1,400 crore in its wholly owned subsidiary, Natco Pharma South Africa Proprietary Limited (NPSAPL). The subsidiary, incorporated on July 31, 2025, operates in the investment holding and pharmaceutical business.
The investment is aimed at supporting NATCO's expansion into new geographies across South Africa and the African continent, to drive future growth and improve profitability.
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About Adcock Ingram
Founded in 1890, Adcock Ingram is one of South Africa's leading pharmaceutical companies, operating across Prescription, Consumer, OTC and Hospital segments. The company manufactures healthcare products through three manufacturing facilities in South Africa and two in India.
For the nine months ended March 31, 2026, Adcock Ingram reported revenue of USD 423 million and EBITDA of approximately USD 59 million. Its turnover stood at ZAR 9,760 million in FY2025, ZAR 9,643 million in FY2024 and ZAR 9,132 million in FY2023, reflecting steady business growth over the past three years.
About NATCO Pharma
NATCO Pharma Limited is an India-based pharmaceutical company engaged in the development, manufacturing and marketing of finished dosage formulations and active pharmaceutical ingredients. Established in 1981, the company operates nine manufacturing facilities approved by global regulatory authorities and exports its products to more than 50 countries, with a strong presence in oncology and other specialty therapeutic segments.
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Disclaimer: The article is for informational purposes only and not investment advice.