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RDY Positive Sentiment Score: 60/100

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 filed a writ petition to challenge an order from the Telangana High Court regarding tax reassessment proceedings. The court has issued an interim stay on the order and the reassessment notice, which is beneficial for the company’s current legal standing. Dr. Reddy's is committed to addressing the situation and believes the merger scheme does not involve tax escapement. Additionally, the company has received assurances from its promoters regarding legal liabilities stemming from the amalgamation.

Market Sentiment Analysis

POSITIVE FACTORS

  • The Hon'ble High Court granted an interim stay on the order.
  • The company remains confident regarding its tax position after the merger.
  • Dr. Reddy's is actively monitoring the situation and prepared to take necessary actions.

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 Company's disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 dated 5th April 2025 and 31st May 2025, wherein the Company had informed the exchanges about the following:
In this connection, the Company, filed a Writ petition (Civil) before the Hon'ble High Court of Telangana ("Hon'ble High Court") inter alia seeking quashing of the impugned order and the reassessment proceedings on various grounds.
The Hon'ble High Court heard the matter and based on the copy of the interim order as uploaded on the website of the Hon'ble High Court on 25th August, 2025, the Company hereby informs that the Hon'ble High Court has granted an interim stay on the impugned order under Section 148A(3) and on the reassessment notice under Section 148 of the Act, till the next date of hearing.
The Company strongly believes that there is no escapement of tax pursuant to the said merger scheme. Further, the Company is closely monitoring the issue and will take actions as required, appropriately.
The said scheme also provides that the Promoters of the Company will jointly and severally indemnify, defend and hold harmless the Company, its directors, employees, officers, representatives, or any other person authorized by the Company (excluding the Promoters) for any liability, claim, or demand, which may devolve upon the Company on account of this amalgamation.
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer & Head-CSR

Frequently Asked Questions

What stock exchanges is Dr. Reddy's listed on?

Dr. Reddy's is listed on NSE, BSE, and the New York Stock Exchange.

What legal action has Dr. Reddy's taken regarding a court order?

Dr. Reddy's filed a Writ petition to quash an impugned order in the High Court.

What did the Hon'ble High Court decide on August 25, 2025?

The Court granted an interim stay on the impugned order and reassessment notice.

How does Dr. Reddy's view the tax implications of its merger?

The Company believes there is no tax escapement related to its merger scheme.

What indemnifications are made by the Company's promoters?

Promoters will indemnify the Company against liabilities arising from the amalgamation.

Last updated: Aug 26, 2025