Dr. Reddy's Laboratories Ltd stated that the Board of Directors has decided to surrender the certificate of registration of Imperial Credit Pvt Ltd as a non-banking finance company, in an exchange filing today.
Imperial Credit Pvt Ltd is a wholly-owned subsidiary of the company and was acquired in 2016-17 (Apr-Mar) to set up a captive insurance business.
In July, the board approved the sale of its investment in Imperial Credit. However, the transfer of 100% shareholding of a non-banking financial company is not viable, the filing said.
It also said Imperial Credit is not a material subsidiary of the company. Imperial Credit had a net worth of 25.52 million rupees and a turnover of 930,000 rupees as of March 31.
The pharmaceutical company also said that the surrender of the non-banking financial company would not have any significant impact on the company or its financials.
The shares of Dr. Reddy's Laboratories were up 0.4% at ₹4,466.15 on NSE at 10:50 IST.
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