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Dr Reddy’s Laboratories Board Announces 1:5 Stock Split

Posted on by angelo
Dr Reddy’s Laboratories Board Announces 1:5 Stock Split

Dr Reddy’s Laboratories on Saturday said the company will split its shares in the ratio of 1:5, meaning that for every share of face value of Rs 5, there will now be 5 shares of face value of Rs 1.

“Sub-division/split of each equity share of the Company of face value of Rs.5/- (five rupees only) each, fully paid up, into 5 (five) equity shares of face value of Re.1/- (one rupee only) each, fully paid up, by way of amendment of the equity clause of the Memorandum of Association of the Company,” the company informed the exchanges.

The record date for the stock split has not yet been announced and will be announced at a later date.

The Company also announced that each American Depositary Share (ADS) will continue to represent 1 ordinary share. As a result, the number of ADSs held by each American Depositary Receipt holder will increase proportionally to the increase in the number of ordinary shares.

This will be the first time in a few years that Dr. Reddy’s is splitting its shares. The company has so far split the face value of its shares only once, in October 2001, from Rs 10 to Rs 5 per share.Also read: IDFC First Bank Q1 results: Profit falls 11% to Rs 681 crore, NII climbs 25%

The Hyderabad-based pharmaceutical company said its June quarter profit after tax fell 0.8% year-on-year (YoY) to Rs 1,392 crore while revenue jumped 13.9% to Rs 7,673 crore.

The Board of Directors of the Company has also approved the injection of funds in the form of investment in preference shares of Dr. Reddy’s Laboratories SA, Switzerland, a wholly-owned subsidiary of the Company, up to an amount of GBP 500 million. The funds will be used for the acquisition of Nicotinell and associated brands through the acquisition of all shares of Northstar Switzerland.

Shares of Dr Reddy’s Lab ended Friday’s session up 0.55 per cent at Rs 6,892 on BSE.

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