Natco Pharma Limited Buyback Offer 2023

Natco Pharma Limited was incorporated in Hyderabad in the year 1981 with an initial investment of INR 3.3 million. With a modest beginning of operations as a single unit with 20 employees, Natco today has seven manufacturing facilities spread across India with dedicated modern research laboratories, capabilities in New Drug Development, etc.

Natco family currently consists of more than 4000 employees, we are consistently ranked among fastest growing pharmaceutical companies in India. Natco is well recognized for its innovation in Pharmaceutical R&D.

Company Strengths

1. Research
The Company’s strength in research and people has been the cornerstone of its success, sustaining large investments in research initiatives of Rs.322 crores during the five years leading to FY17.

2. Culture
The Company is opportunity-driven, responding to new ideas and developments with industrial discipline on the one hand and strategic flexibility on the other.

3. Integration
The Company is integrated across the value chain – APIs to formulations – in the manufacture of select products leading to corresponding advantages in terms of cost, quality and logistics.


Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 210 Cr
Date of Board Meeting approving the proposal: Mar 08 2023
Date of Public Announcement: Mar 10 2023
Buyback Offer Size: 1.64%
Buyback Number of Shares: 30,00,000
Price Type: Open Market
FV: 2
Buyback Price: ₹ 700 Per Equity Share

Details of Buyback:

The Board of Directors of the company at its meeting held on i.e. 08.03.2023 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.2/- not exceeding 30,00,000 Equity Shares (representing 1.64% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs.210 Crore Only, of the total paid-up equity share capital and free reserves of the company as on March 31, 2022 at a price of Rs. 700 on "Open Market Basis"

Salient financial parameters:

Particulars (in cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales 2,185 2,094 1,915 2,052 1,945
Expenses 1,256 1,300 1,332 1,446 1,681
Operating Profit 928 795 583 606 264
OPM % 42% 38% 30% 30% 14%
Other Income 40 130 107 104 99
Interest 15 19 22 13 18
Depreciation 66 81 100 117 143
Profit before tax 887 825 569 580 202
Tax % 22% 22% 19% 24% 16%
Net Profit 695 642 458 442 170
EPS in Rs 37.74 35.24 25.31 24.18 9.31

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “ Natco Pharma Limited” announces buyback plan of its shares up to value of Rs 700, it means that the company will be purchasing shares of " Natco Pharma Limited " from the open market at a price not exceeding Rs.700per share. Scenario 1- If the share price is below Rs. 700 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 700, in that case, the company will put buy order at Rs. 700 only and if someone is ready to sell at that price or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

As it is an open market buyback, so no arbitrage is available.

Company Contact Details:

NATCO Pharma Limited Nalco House, Road No. 2, Banjara Hills, Hyderabad, Telangana - 500 034. Phone No. +91-40-2354 7532, Website:  


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