Natco Pharma shares touched a day high of Rs 850.10 on Friday, after the board approved a Rs 1,279 crore rights issue to raise funds.

It is a way for a company to raise money by offering new shares to its existing shareholders, usually at a lower price than the current market rate.

Natco Pharma’s board has approved issuing up to 1.71 crore new shares at Rs 750 each, which works out to roughly 11% cheaper than where the stock was trading.

Shareholders will get two new shares for every 21 shares they already hold. The record date for eligibility has been set as 1 October, meaning investors need to hold the shares before that date to qualify.

The issue itself will open for subscription on 12 October and close on 22 October. This fundraise comes at a time when Natco has been looking at ways to strengthen its balance sheet.

The company had earlier flagged that it was weighing multiple options, including a rights issue, to support ongoing capital spending and possible acquisitions, including one overseas deal it was evaluating.

It comes after Natco picked up a sizeable stake of nearly 36% in South Africa’s Adcock Ingram Holdings earlier this year, a move the company has described as both an investment and a way to expand its footprint in that market.

On the financial side, Natco’s revenue for the year ended March 2026 stood at Rs 4,078 crore, while profit came in at Rs 1,418 crore, both lower than the year before.

At 14:15 pm, shares of Natco Pharma were last trading at Rs 841.35 on the NSE, down 0.08% for the day, giving the company a market capitalisation of around Rs 15,069 crore.

The stock is down close to 5% since the start of the year, though it has gained nearly 3.5% over the past week.

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