Natco Pharma Board to consider increasing FII limit to 49%

The company said it is also considering merger of Natco Organics with itself

Hyderabad-based Natco Pharma Limited would seek to increase the per centage of foreign equity investment in the company to 49 per cent through issue of fresh shares or convertible securities.

The company today informed the Bombay Stock Exchange (BSE) that the board of directors would consider approval of increase of equity investment per centage in the company to 49 per cent to foreign institutional investors(FIIs)/ foreign portfolio investors among others.

The board would also consider further issue of shares or convertible securities of any nature in the form of private placement, qualified institutional placement (QIP) to FIIS, qualified institutional buyers or any other investors.

Natco board is scheduled to meet on May 22, 2015 to consider among other things the issue of increase of foreign equity investment and the financial results for the quarter ending March, 2015.
 

Currently various institutions and investors falling under foreign investors category together hold around 22 per cent equity in Natco Pharma.This is just 2 per cent below from the mandatory approval by the Government of India's Foreign Investment Promotion Board (FIPB) for any further enhancement of foreign equity in the company.

The board approval for the same would facilitate the FIIs and other foreign investors or the company to seek the FIPB's approval to bring foreign investments into the company over and above the 24 per cent level.

Meanwhile the board would also consider merger of Natco Organics, a wholly owned subsidiary of the company into Natco Pharma Limited, according to the filing.