Natco Pharma Ltd. sold 14.38 acres of land in Telangana's Ranga Reddy district for Rs 115.6 crore on Wednesday, according to an exchange filing.
The sale of the land at Mekaguda gram panchayat in Nandigama mandal will not have any impact as no business operations of the company were carried out on the land and building being sold, the pharmaceutical firm said.
The consideration includes certain infrastructure costs. The land titles are clear and marketable, it said.
The details of the buyer were kept confidential as per an agreement between the two parties, and the buyer does not belong to promoter, promoter group or group companies. This is not a related-party transaction, the filing stated.
The sale of the property does not constitute an undertaking or substantially the whole of the undertaking for Natco Pharma in terms of section 180(1)(a) of the Companies Act, it added.
Shares of Natco Pharma have gone ex-record dividend on Wednesday with the announced interim dividend of Rs 1.50 apiece.
According to the financial results for the firm's second quarter ended Sept 30, 2024, its net profit jumped 83% to Rs 676 crore from Rs 369 crore in the year-ago period. Revenue grew 35% to Rs 1,371 crore from Rs 1,031 crore in the same period in the previous financial year.
The share price of Natco Pharma closed 0.30% lower at Rs 1,351.25 apiece on the National Stock Exchange, compared to a 0.33% advance in the benchmark Nifty 50.
Five out of the 11 analysts tracking the company have a 'buy' rating on the stock, two suggest 'hold' and four recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 7.9%.
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