Should the offer be accepted, Natco Pharma will hold a 35.75% stake in Adcock Ingram, valued at ₹400 crore.
Adcock Ingram is estimated at a valuation of ₹1,100 crore.
The proposed acquisition will bring Natco’s stake in Adcock Ingram to 35.75%, complementing the 64.25% stake held by Bidvest. Post-transaction, Adcock Ingram will continue operating as a privately held South African company with two major strategic shareholders.Adcock Ingram reported revenue of ₹960 crore in FY24, with a gross margin of 33.4%. It posted an EBITDA of ₹140 crore (margin: 14.6%) and a profit after tax of ₹81.4 crore. For the half-year ending December 2024, the company recorded revenue of ₹470 crore and a profit of ₹38.9 crore.
Natco will consolidate its share of Adcock Ingram’s net profits post-acquisition.
The deal, expected to close in four months subject to regulatory approvals, offers Natco a strong foothold in Southern Africa. The company aims to leverage its R&D strengths, regulatory expertise, and global marketing reach to support Adcock’s local leadership and expansion into new markets.
“The proposed transaction will provide Natco Pharma with a well-established entry into the Southern African market. It will also allow Natco Pharma to tap into new revenue streams and expand our footprint in one of the largest and growing emerging markets, while providing a gateway to the African continent,” said Rajeev Nannapaneni, CEO and Vice Chairman of Natco Pharma.
Shares of Natco Pharma Ltd. ended with gains of 1.91% at ₹1,034. The stock has risen nearly 20% in the last one month.
