Dr Reddy's Laboratories Ltd today informed the exchanges that it had filed its Form F-3 registration statement with the US Securities and Exchange Commission yesterday for an ADR issue of up to 13.5 million shares (excluding the underwriter's over-allotment option) with each ADS representing one equity share at par value of Rs5 per share.
The price of the ADS would be determined by reference to the prevailing market prices of the company's equity shares. The ADS would be traded on the New York Stock Exchange, under the ticker symbol 'RDY'
This is the second ADR float by the NYSE-listed Dr Reddys and the issue would lead to an equity dilution of approximately 9 per cent.
The ADR proceeds will be utilised to clear a major part of the debt the compny incurred for the acquisition of private equity firm 3i's stake in Betapharm for €480 million (approximately Rs2093 crore) in cash.
Betapharm is the fourth-largest and fastest growing generics company over the past five years in Germany with a strong track record of successful product launches. It has a market share of around 3.5 per cent and markets high-quality generic drugs with focus on long-term therapy products with high prescription rates.
The acquisition would help Dr Reddy's to expand its operations in Europe. Germany is one of the fastest growing generics market in Europe and Dr. Reddy's growing product pipeline would come in handy to improve market share. The acquisition would add considerable marketing abilities to the European operations of Dr. Reddy's.
After the issue, American Depository Shares will account for almost 21 per cent of the company's total equity.
also see : Dr Reddy's beats Ranbaxy;
snaps up Betapharm for €480 million