Hyderabad-based Natco Pharma Limited on Tuesday completed the acquisition of an additional 13.25% equity stake in South African pharmaceutical company Adcock Ingram Holdings Proprietary Limited, bringing its total shareholding to 49%. According to reports from Business Standard, the transaction was valued at approximately ZAR 1.81 billion, equivalent to around ₹1,060 crore at the prevailing exchange rate. The acquisition was executed through Natco Pharma South Africa Proprietary Limited, the company's wholly owned subsidiary in the country, following the satisfaction of customary closing conditions and regulatory requirements. This marks a significant milestone in Natco Pharma's African growth strategy, nearly doubling the company's strategic influence in Adcock Ingram over the past year.
This marks the second leg of Natco's entry into Adcock Ingram. As reported by Business Standard, the company first acquired a 35.75% stake through participation in Adcock Ingram's delisting process in 2025. The initial acquisition involved a firm intention offer announced in July 2025, shareholder approval in October 2025, and transaction completion in November 2025. With this latest acquisition, Natco Pharma's total shareholding in Adcock Ingram has increased from 35.75% to 49%, significantly strengthening its strategic footprint in the African pharmaceutical industry. The board had initially approved the strategic investment to acquire the additional stake, with this completion marking a significant milestone in Natco Pharma's African growth strategy.
Adcock Ingram, established in 1891, is ranked second in South Africa's private and public pharmaceutical market. According to the report, the company holds a 10% share of the private market, leads the over-the-counter pharmaceutical segment, and is the largest supplier of hospital and critical care products in the country. The company manufactures and distributes a wide range of Prescription, OTC, Consumer, and Hospital products, with its portfolio including brands such as Panado, Allergex, and Myprodol. This acquisition expands Natco Pharma's exposure to one of South Africa's largest pharmaceutical and healthcare companies, providing stronger strategic exposure to the fast-growing African healthcare market.
Natco Pharma's stock on the NSE was trading at ₹99.71 on Tuesday afternoon, down 2% from the previous close of ₹101.50. As reported by Business Standard, the company carries a total market capitalisation of approximately ₹17,332 crore and is listed on the Nifty Smallcap 100 index. The stock movement occurred amid broader market volatility, with the Sensex dropping to 77,085.25 and Nifty 50 declining by 0.62% on July 14. The completion of this deal consolidates Natco Pharma's position as a major shareholder in the South African pharmaceutical company, with the acquisition supporting the company's long-term international strategy. However, future value creation will depend on Adcock Ingram's operating performance, regulatory environment, and successful realization of strategic synergies.
