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Dr Reddy's fixes ADS at $16 per share

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BS Reporter Hyderabad
Dr Reddy's Laboratories (DRL) is raising $200 million through a public offering of 12.5 million ADS (American depository shares) at $16.00 a share. The offering is expected to close on November 22.
 
The ADS price offered is at 2.7 per cent discount compared with the company's ADR (American depository receipts) close of $16.45 on Wall Street yesterday. Following this, the DRL stock declined 5 per cent (by Rs 39) to Rs 736 today on the BSE.
 
The pharma major had, on Nov 13, filed a shelf registration statement and preliminary supplement prospectus with the US Securities and Exchange Commission relating to the offering of ADS of up to 13.5 million. excluding the underwriter's over-allotment option.
 
According to a Dr Reddy's spokesperson, the company intends to use the proceeds from the offering for various corporate purposes. These include potential acquisitions, investments in joint ventures and subsidiaries, addition of new capabilities and capital expenditure for ramping up production capacities.
 
The DRL promoters, on October 27 this year, held 27.53 per cent in the company, while the stake held by foreign institutional investors was 31.12 per cent. ADRs and foreign nationals' holding constituted 13.87 per cent, and Indian public and corporates accounted for another 13.31 per cent of the company's total equity.

 
 

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First Published: Nov 18 2006 | 12:00 AM IST

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