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RDY Positive Sentiment Score: 75/100

Dr. Reddy's Laboratories Ltd. 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 Email : mail@drreddys.com www.drreddys.co

Key Takeaway: Dr. Reddy's Laboratories has signed a Security Subscription and Shareholders' Agreement with TEQ Green Power XI Private Limited and O2 Power SG Pte Ltd to invest in O2 Renewable Energy IX Private Limited. This partnership aims to enhance access to renewable energy through solar and wind power sources. Dr. Reddy's will hold a 26% stake, retaining certain rights including the ability to nominate a director and first rights on share issuance. The transaction is structured outside the realm of related party transactions.

Market Sentiment Analysis

POSITIVE FACTORS

  • Dr. Reddy's Laboratories is expanding into renewable energy.
  • The partnership includes notable players like TEQ Green Power XI Private Limited.
  • The agreement provides Dr. Reddy's with special rights, enhancing its control.

Full Press Release Details

National Stock Exchange of India Ltd. (Stock Code:
BSE Limited (Stock Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd. (Stock Code: DRREDDY)
With reference to the captioned subject and in compliance
with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "SEBI Listing Regulations"),
we hereby inform that Dr. Reddy's Laboratories Limited (the "Company") has entered into a Security Subscription and
Shareholders' Agreement for consumption and supply of renewable energy, with TEQ Green Power XI Private Limited and O2 Power SG
Pte Ltd, for investment in O2 Renewable Energy IX Private Limited ("SPV").
The disclosure required under Regulation 30 of the
SEBI Listing Regulations read with Circular dated September 9, 2015, bearing reference no. CIR/CFD/CMD/4/2015 is enclosed herewith as
Kindly take the above on your record.
For Dr. Reddy's Laboratories Limited
/s/ K Randhir Singh
K Randhir Singh
Company Secretary, Compliance Officer and Head-CSR
S. No. Particulars Details
1. Name(s) of parties with whom the agreement is entered O2 Renewable Energy IX Private Ltd ("SPV"); TEQ Green Power XI Private Limited; O2 Power SG Pte Ltd
2. Purpose of entering into the agreement For accessing renewable power through solar and wind power plants through (Inter-State Transmission System) ISTS under captive structure.
3. Shareholding, if any, in the entity with whom the agreement is executed Presently, the Company is not holding any shares in the proposed SPV.
4. Significant terms of the agreement (in brief) special rights like right to appoint directors, first right to share subscription in case of issuance of shares, right to restrict any change in capital structure etc. a) The arrangement for accessing such renewable power will be done through a partnership with TEQ Green Power XI Private Limited and/or its affiliate with security holding ratio of 26% by the Company and 74% by TEQ Green Power XI Private Limited and/or its affiliate, in the SPV. b) The Company has the right to nominate 1(one) Director on the Board of SPV, receive first offer in case of transfer of securities of SPV to any third party, right to restrict capital restructuring, except otherwise defined, etc.
5. Whether,the said parties are related to promoter/promoter group/ group companies in any manner. If yes, nature of relationship No
6. Whether the transaction would fall within related party transactions? If yes, whether the same is done at "arms length"; No
7. In case of issuance of shares to the parties, details of issue price, class of shares issued; The Company and TEQ Green Power XI Private Limited and/or its affiliate will invest in SPV in the ratio of 26:74.
8. Any other disclosures related to such agreements, viz., details of nominee on the board of directors of the listed entity, potential conflict of interest arising out of such agreements, etc As per para 4 above

Frequently Asked Questions

What is the collaboration about?

Dr. Reddy's Laboratories has agreed to a partnership for renewable energy with TEQ Green Power XI and O2 Power SG.

What is the investment structure in the SPV?

The investment in O2 Renewable Energy IX Private Limited is 26% by Dr. Reddy's and 74% by TEQ Green Power.

Does Dr. Reddy's hold shares in the SPV?

No, Dr. Reddy's Laboratories currently does not hold any shares in the proposed SPV.

What rights does Dr. Reddy's have in the SPV?

Dr. Reddy's has the right to appoint one director and receive first offers on securities transfer.

Are the parties to this agreement related?

No, the parties involved are not related to the promoter or promoter group.

Last updated: Jul 15, 2023