Dr. Reddy Laboratories Shares Rise Over 3% After Incorporation of Step-Down Wholly Owned Subsidiary

The Shares of Dr. Reddy's Laboratories rose over 2.5 percent on Friday following the incorporation of a step-down wholly owned subsidiary on September 28.

The shares of Dr. Reddy's Laboratories at 11:02 am IST  am IST were trading at Rs 5,610, up by 3.33 percent.

Incorporation of a step-down wholly owned subsidiary

Dr. Reddy’s Laboratories SA, in Switzerland, a wholly-owned subsidiary of the Company, has incorporated a wholly-owned subsidiary in Jamaica, named “Dr. Reddy’s Laboratories Jamaica Limited”. Accordingly, Dr. Reddy’s Laboratories Jamaica Limited is a step-down wholly-owned subsidiary of the Company, the company announced through an exchange filing on Thursday.

The authorized capital of the company is USD 5,000,000; Paid up capital is USD 3,000,000.

Objects and effects of acquisition

The NewCo. will be engaged in importation, warehousing, distribution and exportation of pharmaceuticals. The business of the proposed NewCo. is not outside the main line of business of the Company.

Cost of acquisition

Dr. Reddy’s Laboratories SA will be paying cash consideration amounting to USD 3,000,000 to the proposed NewCo. towards subscription of 100 percent shareholding.