Dr Reddy's Laboratories today said it will issue bonus debentures to its shareholders worth up to Rs 520 crore and has fixed March 18, 2011 as record date for the same.
In a filing to the Bombay Stock Exchange (BSE), the company said its shareholders are entitled to receive six unsecured redeemable non convertible bonus debentures of Rs 5 each for every existing fully paid equity share of Rs 5 each.
The quantum of the non-convertible fully-paid bonus debentures will be "not less than Rs 506 crore and not exceeding Rs 520 crore", it said.
The tenor of the bonus debentures will be 36 months from the date of allotment, it said adding they would be redeemable at par in full at the end of the period.
"The board has also fixed 9.25% as the coupon rate on these debentures, payable annually," Dr Reddy's said.
The company said it plans to list the bonus debentures on the National Stock Exchange (NSE) and BSE.
Shares of Dr Reddy's Laboratories today closed at Rs 1,619.55 on the BSE, up 0.94% from its previous close.