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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 Web: www.drreddys.c

Key Takeaway: Dr. Reddy's Laboratories has announced a fund infusion of Rs. 565.4 Crores into its wholly-owned subsidiary, Dr. Reddy's Laboratories LLC in Russia, obtaining a 45.19% equity stake. This investment is aimed at bolstering working capital requirements of the Russian entity, which operates in the pharmaceutical sector. The move enhances Dr. Reddy's presence in the Russian market, which has shown significant turnover growth in recent years. The acquisition, characterized as a related party transaction, has no conflicting interests from the promoter group.

Market Sentiment Analysis

POSITIVE FACTORS

  • Dr. Reddy's Laboratories has approved a significant fund infusion into its Russian subsidiary.
  • The investment aims to enhance working capital, potentially strengthening DRL Russia's market presence.
  • The acquisition represents a strategic move to solidify control in the Russian pharmaceutical market.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code: DRREDDY)
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd (Stock Code: DRREDDY)
This is in furtherance to our intimation dated November 5, 2024, wherein we had informed that the Board has approved the fund infusion by way of investment in equity shares of Dr. Reddy's Laboratories LLC, Russia, a step-down wholly-owned subsidiary ("DRL Russia"), upto an amount of Rs.600 Crores.
In this connection, we further inform that the Company has made an investment of Rs. 565,40,77,993/- in DRL Russia for a total equity stake of 45.19%.
The details required under Regulation 30 of the SEBI Listing Regulations, read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, with respect to the above fund infusion is given in Annexure enclosed herewith.
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer and Head-CSR
Disclosure under Part A Para A(i) of Schedule III read with Regulation 30 of the SEBI (Listing
Obligation and Disclosure Requirements) Regulations, 2015
Sl. No Particulars Description
1 Name of the target entity, details in brief such as size, turnover etc. Dr. Reddy's Laboratories LLC, Russia, ("DRL Russia"), a step-down wholly-owned subsidiary of the Company. The fund infused by the Company into DRL Russia will be used for working capital requirements. The turnover of DRL Russia for FY2025 was Rs. 2,347 Cr.
2 Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at "arms-length" The investment in DRL Russia is a related party transaction, as DRL Russia is a step-down wholly owned subsidiary and accordingly a related party to the Company. Except as stated above, the promoter/ promoter group/ group companies have no interest in DRL Russia.
3 Industry to which the entity being acquired belongs DRL Russia is a Pharmaceutical company registered in Russian Federation distributing pharmaceutical medicines in the country.
4 Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity) The fund infused by the Company into DRL Russia will be used for working capital requirements.
5 Brief details of any governmental or regulatory approvals required for the acquisition Not Applicable
6 Indicative time period for completion of the acquisition The Company has acquired total equity stake of 45.19% in DRL Russia on July 25, 2025.
7 Nature of consideration- whether cash consideration or share swap or any other form and details of the same Cash consideration
8 Cost of acquisition and/or the price at which the shares are acquired Cash consideration of Rs. 565,40,77,993/- towards total equity stake of 45.19% in DRL Russia.
9 Percentage of shareholding / control acquired and / or number of shares acquired DRL Russia is a step- down wholly owned subsidiary of the Company.
10 Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information (in brief) DRL Russia is a Pharmaceutical company registered in Russian Federation distributing pharmaceutical medicines in the country. The company was incorporated on 5 th of April 2003. The turnover of the company for the previous 3 years is shown in below table: FY 2025 Rs.2347 Cr FY 2024 Rs.2084 Cr FY 2023 Rs.1915 Cr

Frequently Asked Questions

What is the investment amount made in DRL Russia?

The investment made in DRL Russia is Rs. 565,40,77,993.

What percentage stake does Dr. Reddy's have in DRL Russia?

Dr. Reddy's has a total equity stake of 45.19% in DRL Russia.

Is the transaction with DRL Russia a related party transaction?

Yes, the investment in DRL Russia is categorized as a related party transaction.

What will the funds be used for in DRL Russia?

The funds will be used for working capital requirements in DRL Russia.

When was the stake in DRL Russia acquired?

The stake in DRL Russia was acquired on July 25, 2025.

Last updated: Jul 25, 2025