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Dr Reddy's sets $260 mn ADS issue

Dr Reddys Laboratories Ltd (DRL) is floating its new American Depositary Shares (ADS) issue of up to 13.5 million shares, reports Suprotip Ghosh.

india Updated: Nov 14, 2006 18:50 IST

New York Stock Exchange-listed Dr Reddy's Laboratories Ltd (DRL) has told US regulators that it plans to issue up to 13.5 million American Depositary Shares (ADS) with an over-allotment option of 1.5 million ADS.

The issue plan was outlined by the Hyderabad-based pharmaceuticals company in a shelf registration statement with the Securities and Exchange Commission.

Reuters, citing a document with deal details, reported from Hongkong that it will raise roughly $260 million through the issue, with pricing to be determined after close of trade on Thursday in New York.

DRL's issue follows a sponsored issue of American shares by software leader Infosys last December.

The company is yet to release a prospectus for the issue.

Established in 1984, DRL is the third largest pharmaceutical company in the country. It acquired Germany’s second largest generics manufacturer Betapharm in March this year for about Rs 2,600 crore as part of a strategy to tap European markets.

Reuters said the US issue sale is being handled by Citigroup and Merrill Lynch. Merrill handled Dr Reddy's initial $132 million US offering in 2001.

Dr Reddy's U.S.-listed shares closed up less than 0.3 percent at $17.50 in New York on Monday.

Its US shares have jumped more than 60 percent this year as Indian stocks have been among the world's top performers on the back of the country's 8 percent economic growth.


First Published: Nov 14, 2006 18:13 IST