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DR. REDDY S LABORATORIES LIMITED Registered Office : 8-2-337, Road No.3, Banjara Hills, Hyderabad 500 034, Telangana, India CIN : L85195TG1984PLC004507, Tel : +91 40 4900 2900, Fax : +91 40 4900 2999 Website : www.drredd

Wednesday, April 13, 2016 5 min read
Key Takeaway: DR. REDDY S LABORATORIES LIMITED Registered Office : 8-2-337, Road No.3, Banjara Hills, Hyderabad 500 034, Telangana, India CIN : L85195TG1984PLC004507, Tel : +91 40 4900 2900, Fax : +91 40 4900 2999 Website : www.drreddys.com, E-mail : mail@drreddys.com OF THE SHAREHOLDERS/B

Full Press Release Details

DR. REDDY S LABORATORIES LIMITED
Registered Office : 8-2-337, Road No.3, Banjara Hills, Hyderabad 500 034, Telangana, India
CIN : L85195TG1984PLC004507, Tel : +91 40 4900 2900, Fax : +91 40 4900 2999
Website : www.drreddys.com, E-mail : mail@drreddys.com
OF THE SHAREHOLDERS/BENEFICIAL OWNERS OF THE EQUITY SHARES OF DR. REDDY S LABORATORIES LIMITED
This Public Announcement ( Public
Announcement ) is made in relation to the Buyback of equity shares (as defined below) by Dr. Reddy s Laboratories Limited (the Company ) from the BSE Limited ( BSE ) and the National Stock
Exchange of India Limited ( NSE and together with the BSE, the Stock Exchanges ), pursuant to the provisions of Regulation 15(c) and 15(d) of, and in compliance with, the Securities and Exchange Board of India (Buy Back
of Securities) Regulations, 1998 (including any statutory modification(s), or re-enactment for the time being in force) ( Buyback Regulations ). This Public Announcement contains disclosures as specified in Schedule II of the
Buyback Regulations.
BUYBACK OF EQUITY SHARES FROM THE OPEN MARKET THROUGH THE STOCK EXCHANGES
Part A -Disclosures in accordance with Part A of Schedule II of the Buyback Regulations
The Company believes that the Buyback will create long term value for continuing shareholders.
The Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in treasury income that the Company could have otherwise earned on the funds deployed for the
thereof, if any, constituted by the Board or persons nominated by the Board to exercise its
powers in relation to the Buyback), at their discretion, in accordance with the Buyback Regulations. However, in accordance with the Buyback Regulations, Buyback price for the equity shares in physical form will be determined as the volume weighted
average price of the equity shares bought back, other than in the physical form, during the calendar week in which the equity shares in physical form are received by Kotak Securities Limited ( Company s Broker ) (or in case no
equity shares are bought back in the normal market during that calendar week then the previous week when the Company last bought back equity shares) and the price of equity shares tendered in physical form during the first week of the Buyback shall
be the volume weighted average market price of the equity shares of the Company during the preceding calendar week.
Sl. No. Promoter/Promoter Companies/Persons who are in control No. of Equity Shares %
1. Dr. Reddy s Holdings Limited 3,99,61,234 23.42
2. Mr. Satish Reddy 12,05,832 0.71
3. Ms. K Samrajyam 11,15,360 0.65
4. Mr. G V Prasad 13,65,840 0.80
5. Ms. G Anuradha 1,496 0.00
6. Ms. K Deepti Reddy 0
7. APS Trust 0
8. VSD Holdings & Advisory LLP 0
9. K Satish Reddy (HUF) 0
10. Ms. G Vani Sanjana Reddy 0
11. Ms. G Mallika Reddy 0
12. G V Prasad (HUF) 0
Total 4,36,49,762 25.58
Mr. Satish Reddy, Mr. G V Prasad, Ms. G Anuradha and Ms. K Deepti Reddy are Directors of
Dr. Reddy s Holdings Limited (Promoter Company).
Particulars Equity shares Purchased Rate of Purchase (Rs.) No. of equity shares after purchase
Holding as on 16 August 2015 3,97,86,934
21 August 2015 12,000 4,238.63 3,97,98,934
25 August 2015 11,250 3,964.73 3,98,10,184
08 September 2015 300 3,890.48 3,98,10,484
08 September 2015 12,200 3,892.32 3,98,22,684
22 September 2015 6,500 3,937.54 3,98,29,184
10 November 2015 30,000 3,384.79 3,98,59,184
13 November 2015 15,000 3,353.92 3,98,74,184
17 November 2015 21,450 3,439.83 3,98,95,634
27 November 2015 16,000 3,099.00 3,99,11,634
04 December 2015 9,000 3,196.76 3,99,20,634
08 December 2015 16,000 3,099.79 3,99,36,634
12 January 2016 24,600 2,907.56 3,99,61,234
Total Purchase 174,300
The text of the Report of M/s. B S R & Co.
LLP, the Statutory Auditors of the Company, dated 17 February 2016, addressed to the Board of Directors of the Company is reproduced below:
Dr. Reddy s Laboratories Limited
8-2-337, Road No.3, Banjara Hills,
Statutory Auditor s Report in respect of proposed buyback of equity shares by Dr. Reddy s Laboratories Limited ( the Company ) in terms of the clause (xi) of Part A of Schedule II of the Securities and Exchange Board of
India (Buy Back of Securities) Regulations, 1998 (as amended).
Chartered Accountants
Registration No.: 101248W/W-100022
Membership No.: 205385
Dr. Reddy s Laboratories Limited
Computation of amount of permissible capital payment towards buy back of equity shares in accordance with Section 68 (2)(c) of
the Companies Act, 2013 (the Act ) and proviso to Regulation 4(1) of the Buy Back Regulations based on the last audited financial statements :
Particulars Amount in INR
Paid up equity share capital (A) * 851,906,370
Free Reserves * :
- Securities premium account 19,590,881,998
- General reserve 17,268,398,555
- Surplus in the statement of profit & loss 67,619,215,358
Total free reserves (B) 104,478,495,911
Total (A + B) 105,330,402,281
Permissible capital payment Lower of (C) and (D) below
Permissible capital payment for Buy Back from open market in Accordance with proviso to Regulation 4(1) of the Buy Back Regulation (Less than 15% of paid up capital and free reserves) (C ) 15,799,060,340
Permissible capital payment in accordance with Section 68(2)(c) of the Act (25% of paid up capital and free reserves) (D ) 26,333,100,572
* the amount have been extracted from the standalone financial statements of the Company
for the year ended 31 March 2015
Part B -Disclosures in Accordance with Part B of Schedule II of the Buyback Regulations
The Board approval for the Buyback was granted
on 17 February 2016 and the shareholders approval for the Buyback by way of postal ballot was received on 01 April 2016.
Activity Date
Date of receipt of Board approval 17 February 2016
Date of receipt of shareholder approval 1 April 2016
Date of publication of the Public announcement 12 April 2016
Date of commencement of the Buyback 18 April 2016
Acceptance of equity shares accepted in dematerialised mode Upon the relevant pay-out by the Stock Exchanges
Verification/Acceptance of equity shares accepted in the physical mode Within 15 days of the pay-out by the Stock Exchanges
Extinguishment of equity shares / share certificates In case the equity shares bought back are in dematerialized form, the same will be extinguished in the manner specified in the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996, as amended and the bye-laws framed thereunder. In case the equity shares bought back are in physical form, the Company shall extinguish and physically destroy the share certificates bought back during the month, on or before the 15th day of the succeeding month. Provided that, the Company shall ensure that all the equity shares bought back are extinguished within 7 days of the last date of completion of the Buyback
Last Date for the Buyback Earlier of: (a) 17 October 2016 (that is 6 months from the date of the opening of the Buyback); or (b) when the Company completes the Buyback by deploying the amount equivalent to the Maximum Buyback Size; or (c) at such earlier date as may be determined by the Board (including a committee thereof, if any, constituted by the Board or persons nominated by the Board to exercise its powers in relation to the Buyback), after giving notice of such earlier closure, subject to the Company having deployed an amount equivalent to the Minimum Buyback Size (even if the Maximum Buyback Size has not been reached or the Maximum Buyback Shares have not been bought back), however, that all payment obligations relating to the Buyback shall be completed before the last date for the Buyback
The contact details of the Company s Broker are as follows:
Kotak Securities Limited
Bandra Kurla Complex, Bandra (East)
Mr. Karl Sahukar, Tel: +91 22 4336 0827
Kotak Securities Limited
Bandra Kurla Complex, Bandra (East)
Mr. Karl Sahukar, Tel: +91 22 4336 0827
Please note that there could however be delay in completing the transaction due to unavoidable
circumstances. In case of receipt of incomplete documentation from the shareholders holding physical shares, the price payable for the Buyback of such physical shares will be the price applicable in accordance with Paragraph 4.10 of Part B above
during the week in which the documentation in respect of the Buyback of such physical shares has been completed in all respects.
Amount in Rs. Lacs, unless otherwise stated
Particulars For nine months ended 31 Dec 2015 For the year ended 31 March 2015 For the year ended 31 March 2014 For the year ended 31 March 2013
Unaudited Audited Audited Audited
Income
Revenue from Operations 780,441 992,745 964,684 824,467
Other operating revenue 4,652 8,349 8,121 18,934
Total revenue 785,093 1,001,094 972,805 843,401
Expenses
Cost of Materials consumed 149,829 232,263 224,802 234,102
Purchase of stock in trade 48,369 52,606 46,904 39,308
Changes in inventories of finished goods, work-in-progress and stock-in-trade (7,486 ) (2,896 ) (17,048 ) (10,073 )
Employee benefits expense 126,018 149,086 141,991 129,601
Selling expenses 77,168 106,350 89,898 76,684
Depreciation and amortisation expense 46,797 49,023 38,050 31,285
Provision for decline in the value of long-term investments 2,449 2,232
Other expenditure 187,864 224,585 207,635 172,980
Total expenses 628,559 811,017 734,681 676,119
Profit from operations before other income, finance costs and exceptional items 156,534 190,077 238,124 167,282
Other Income 15,147 22,285 15,146 14,171
Profit from ordinary activities before finance costs and exceptional items 171,681 212,362 253,270 181,453
Finance Costs 4,921 6,380 7,831 6,140
Profit from ordinary activities after finance costs but before exceptional items 166,760 205,982 245,439 175,313
Exceptional Items
Profit from ordinary activities before tax 166,760 205,982 245,439 175,313
Tax expense 30,745 38,047 52,155 48,766
Net Profit from ordinary activities after tax 136,015 167,935 193,284 126,547
Extraordinary items
Net Profit for the period 136,015 167,935 193,284 126,547
Paid-up equity share capital (Face Value of Rs. 5 per Share) 8,530 8,519 8,505 8,492
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year 1,054,880 1,054,880 924,377 769,869
Earnings per share
- Basic 79.77 98.60 113.67 74.54
- Diluted 79.47 98.18 113.13 74.17
Key Ratios Basic:
Book Value per share 704.84 624.11 548.40 458.30
Debt Equity Ratio 0.24 0.29 0.29 0.27
Return on average net worth 16 % 17 % 23 % 17 %
Amount in Rs. Lacs, unless otherwise stated
Sl. No. Particulars For nine months ended 31 Dec 2015 For the year ended 31 March 2015 For the year ended 31 March 2014 For the year ended 31 March 2013
Unaudited Audited Audited Audited
1 Net Income from Sales and Services 1,171,460 1,481,889 1,321,703 1,162,656
2 Cost of Sales and Services
a) (Increase) / decrease in stock-in-trade and work-in-progress (18,999 ) (5,564 ) (33,094 ) (13,608 )
b) Consumption of raw materials 175,894 280,969 273,402 304,439
c) Purchase of traded goods 91,577 92,652 76,797 79,189
d) Other expenditure 212,940 259,803 246,583 186,850
3 Gross Profit (1 - 2) 710,047 854,029 758,015 605,786
4 Selling, General and Administrative expenses 340,700 425,848 387,830 342,720
5 Research and Development expenses 129,550 174,488 124,023 76,733
6 Other (income) / expense, net (5,670 ) (9,167 ) (14,159 ) (24,790 )
7 Operating profit (3) - (4 + 5 + 6) 245,467 262,860 260,321 211,123
8 Finance (expense) / income, net (620 ) 16,818 3,995 4,599
9 Share of profit of equity accounted affiliate, net of income taxes 1,700 1,948 1,741 1,044
10 Profit before tax (7 + 8 + 9) 246,547 281,626 266,057 216,766
11 Tax expense 53,880 59,840 50,937 49,004
12 Net Profit after tax (10 - 11) 192,667 221,786 215,120 167,762
13 Extra-ordinary items (net of tax expense)
14 Net Profit for the period / year (12 - 13) 192,667 221,786 215,120 167,762
15 Net Profit attributable to:
- Equity holders of the Company 192,667 221,786 215,145 167,774
- Non-controlling interest (25 ) (12 )
16 Paid-up equity share capital (Face value of Rs. 5/- each) 8,530 8,519 8,505 8,492
17 Securities premium, retained earnings, share based payment reserve and other components of equity 1,104,499 1,104,499 899,541 719,408
18 Earnings per share before and after extra-ordinary items (in Rupees) per Rs. 5/- share
- Basic 112.99 130.22 126.52 98.82
- Diluted 112.63 129.75 126.04 98.44
Key Ratios Basic:
Book Value per share 754.25 653.25 533.78 428.56
Debt Equity Ratio 0.26 0.39 0.49 0.50
Return on average net worth 21 % 22 % 26 % 26 %
Twelve months period ended High (INR) Date of High No. of equity shares traded on that date Low (INR) Date of low No. of equity shares traded on that date Average price INR * Total volume traded in the period Total turnover of the business transacted in the period (INR)
31-Mar-14 2,939.80 28-Feb-14 29,880 1,766.30 01-Apr-13 20,894 2355.09 55,99,140 13,09,58,36,941
31-Mar-15 3,662.00 01-Dec-14 10,519 2,250.00 19-May-14 79,064 2985.16 63,37,199 18,40,14,03,176
31-Mar-16 4382.95 20-Oct-15 12254 2,750 21-Jan-16 58,318 3538.27 99,08,340 33,80,71,26,775
During each of the last six months preceding the date of this public announcement
Last six months High (INR) Date of High No. of equity shares traded on that date Low (INR) Date of low No. of equity shares traded on that date Average price INR * Total volume traded in the period Total turnover of the business transacted in the period (INR)
Sep-15 4,308.25 01-Sep-15 15,431 3,855.65 23-Sep-15 8,257 4,046.76 3,88,628 1,57,40,57,082
Oct-15 4,382.95 20-Oct-15 12,254 4,080.00 28-Oct-15 16,977 4,219.69 5,62,523 2,38,31,35,498
Nov-15 4,375.30 04-Nov-15 10,126 3,049.75 26-Nov-15 2,80,231 3,555.15 24,68,369 8,37,09,72,814
Dec-15 3,265.00 02-Dec-15 74,393 2,950.50 11-Dec-15 66,650 3,076.13 12,71,471 3,92,60,68,449
Jan-16 3,122.90 01-Jan-16 19,600 2,750.00 21-Jan-16 58,318 2,958.60 8,43,357 2,48,80,54,545
Feb-16 3,151.85 18-Feb-16 1,11,200 2,814.80 15-Feb-16 38,546 3,004.54 10,77,257 3,23,30,09,322
Mar-16 3,280.00 4-Mar-16 57,652 2,891.95 29-Mar-16 52,420 3,119.52 7,36,401 2,29,17,48,510
Twelve months period ended High (INR) Date of High No. of equity shares traded on that date Low (INR) Date of low No. of equity shares traded on that date Average price INR * Total volume traded in the period Total turnover of the business transacted in the period (INR)
31-Mar-14 2,939.40 28-Feb-14 1,123,755 1,768.25 01-Apr-13 3,79,436 2,354.79 8,17,11,432 1,91,80,57,58,000
31-Mar-15 3,666.25 01-Dec-14 214,232 2,246.50 19-May-14 10,47,342 2,985.33 9,22,91,860 2,66,18,15,65,000
31-Mar-16 4386.6 20-Oct-15 363,202 2750.05 21-Jan-16 623,985 3538.09 117,848,570 4,13,50,38,82,000
During each of the last six months preceding the date of this public announcement
Last six months High (INR) Date of High No. of equity shares traded on that date Low (INR) Date of low No. of equity shares traded on that date Average price INR * Total volume traded in the period Total turnover of the business transacted in the period (INR)
Sep-15 4,309.45 01-Sep-15 4,97,523 3,851.65 08-Sep-15 4,16,533 4,047.34 86,12,268 34,93,65,45,000
Oct-15 4,386.60 20-Oct-15 3,63,202 4,080.10 28-Oct-15 6,45,418 4,220.59 1,07,53,973 45,28,13,82,000
Nov-15 4,379.20 04-Nov-15 2,86,491 3,047.05 27-Nov-15 13,88,236 3,556.90 2,46,64,377 84,84,10,19,000
Dec-15 3,265.00 02-Dec-15 8,35,919 2,951.00 11-Dec-15 4,85,851 3,076.44 1,17,09,161 36,17,14,68,000
Jan-16 3,123.00 01-Jan-16 1,71,860 2,750.05 21-Jan-16 6,23,985 2,958.13 79,94,450 23,63,72,33,000
Feb-16 3,154.40 18-Feb-16 11,31,720 2,813.05 15-Feb-16 3,80,782 3,004.73 1,07,85,081 32,39,97,10,000
Mar-16 3,283.00 4-Mar-16 5,92,633 2,887.15 29-Mar-16 5,06,798 3,118.52 85,82,298 26,70,73,90,000
Date Description NSE BSE
High Low High Low
09.02.2016 Day prior to Notice of Board meeting to consider Buyback proposal was given to NSE and BSE 3115.00 2948.00 3112.00 2950.00
10.02.2016 Day on which Notice of Board meeting to consider Buyback proposal was given to NSE and BSE 2937.65 2825.00 2935.00 2828.00
17.02.2016 Board Meeting Date* 2989.00 2879.10 2989.85 2877.00
18.02.2016 First Trading Day post Board Meeting Date 3154.40 3020.00 3151.85 3020.00
As on date of the public announcement Post completion of the Buyback *
Authorised:
24,00,00,000 equity shares of Rs. 5/- each 1,20,00,00,000 1,20,00,00,000
Issued: 85,30,39,265 83,06,19,020
17,06,07,853 equity shares of Rs. 5/- each fully paid up
Subscribed and fully paid up: 85,30,38,265 83,06,18,020
17,06,07,653 equity shares of Rs. 5/- each fully paid up
Pre Buyback Post Buyback
Shareholders No. of Equity Shares % of Shares No. of Equity Shares % of Shares
Promoters and/or persons who are in the control and/or acting in concert (Promoter Group) 4,36,49,762 25.58 4,36,49,762 26.28
Indian Financial Institutions 45,87,435 2.69
Banks 2,42,636 0.14
Mutual Funds 54,45,931 3.19
Indian Public & Corporates 2,00,02,458 11.73
Foreign Institutional Investors 6,14,10,798 36.00 12,24,73,842 73.72
NRIs 20,85,783 1.22
Foreign Nationals 5,762 0.00
Foreign Companies 45,94,279 2.70
American Depository Shares (ADS) 2,85,82,809 16.75
Total 17,06,07,653 100.00 16,61,23,604 100.00
Sl. No. Promoter/Promoter Companies/Persons who are in control No. of Equity Shares %
1. Dr. Reddy s Holdings Limited 3,99,61,234 23.42
2. Mr. Satish Reddy 12,05,832 0.71
3. Ms. K Samrajyam 11,15,360 0.65
4. Mr. G V Prasad 13,65,840 0.80
5. Ms. G Anuradha 1,496 0.00
6. Ms. K Deepti Reddy 0
7. APS Trust 0
8. VSD Holdings & Advisory LLP 0
9. K Satish Reddy (HUF) 0
10. Ms. G Vani Sanjana Reddy 0
11. Ms. G Mallika Reddy 0
12. G V Prasad (HUF) 0
13. Mr. G Sharathchandra Reddy 0
14. Ms. K Shravya Reddy 0
Total 4,36,49,762 25.58
Mr. Satish Reddy, Mr. G V Prasad, Ms. G Anuradha and Ms. K Deepti Reddy are Directors of
Dr. Reddy s Holdings Limited (Promoter Company).
Particulars Equity shares Purchased Rate of Purchase (Rs.) No. of equity shares after purchase
Holding as on 01 April 2015 3,97,29,284
27 May 2015 5,000 3,543.41 3,97,34,284
28 May 2015 25,000 3,547.11 3,97,59,284
28 May 2015 3,650 3,513.42 3,97,62,934
10 August 2015 23,300 4,277.57 3,97,86,234
10 August 2015 700 4,278.70 3,97,86,934
21 August 2015 12,000 4,238.63 3,97,98,934
25 August 2015 11,250 3,964.73 3,98,10,184
8 September 2015 300 3,890.48 3,98,10,484
8 September 2015 12,200 3,892.32 3,98,22,684
22 September 2015 6,500 3,937.54 3,98,29,184
10 November 2015 30,000 3,384.79 3,98,59,184
13 November 2015 15,000 3,353.92 3,98,74,184
17 November 2015 21,450 3,439.83 3,98,95,634
27 November 2015 16,000 3,099.00 3,99,11,634
04 December 2015 9,000 3,196.76 3,99,20,634
08 December 2015 16,000 3,099.79 3,99,36,634
12 January 2016 24,600 2,907.56 3,99,61,234
Total Purchase 2,31,950
The Company has appointed the following as Merchant
Banker to the Buyback:
Kotak Mahindra Capital Company Limited,
Address: 27 BKC, C-27, G Block,
Bandra Kurla Complex, Bandra (E),
Mumbai, 400051. Tel: +91 22 4336 0128,
Fax: +91 22 6713 2445,
project.drlbuyback@kotak.com
Contact Person: Mr. Ganesh Rane
As per Regulation 19(1)(a) of the Buyback
Regulations, the Board accepts responsibility for the information contained in this Public Announcement and for the information contained in all other advertisements, circulars, brochures, publicity materials etc. which may be issued in relation to
the Buyback and confirm that the information in such documents contains and will contain true, factual and material information and does not and will not contain any misleading information.
For and on behalf of the Board
Laboratories Limited
Satish Reddy G V Prasad Sandeep Poddar
Chairman Co-Chairman, MD & CEO Company Secretary
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Last updated: Apr 13, 2016