Dr. Reddy’s Laboratories Ltd Board Approves Borrowings, Sale Of CDMO Division

The Board of Directors of Dr. Reddy’s Laboratories Ltd at their meeting held on March 27, 2020, have approved borrowings by the Company, either through issuance of commercial papers, debentures, bonds and/or through bank credit lines, term loans including external commercial borrowings, as the Company may deem fit, up to an aggregate amount of Rs. 2,000 crores, in one or more tranches.

Further, the Board of Directors have also approved sale of the Contract Development and Manufacturing Organisation (CDMO) division of Custom Pharmaceutical Services (CPS) business of the Company, to our wholly owned step-down subsidiary, Aurigene Pharmaceutical Services Limited (APSL), on slump sale basis, for a consideration of USD 72 million (equivalent INR for USD by applying the conversion rate prevailing as on the date of execution of the transaction).

Shares of DR.REDDY’s LABORATORIES LTD. was last trading in BSE at Rs.2950 as compared to the previous close of Rs. 2924.5. The total number of shares traded during the day was 19456 in over 2710 trades.

The stock hit an intraday high of Rs. 3067.35 and intraday low of 2880.9. The net turnover during the day was Rs. 57758025.-Equity Bulls