Dr Reddys board approve Rs 2,000 crore borrowing

The multinational pharmaceutical company, Dr Reddy’s Laboratories, announced in a regulatory filing released during market hours on Friday that its board of directors have given its approval to the company for borrowing up to Rs 2,000 crore, as part of fund-raising plans.

In a meeting held on March 27, the board of directors informed that the borrowings would be made through the issuance of commercial papers, debentures, bonds or via bank credit lines, term loans including external commercial borrowings, as the company may deem fit, up to an aggregate amount of Rs 2,000 crore, in one or more tranches.

Apart from this, Dr Reddy’s board has also approved the sale of contract development & manufacturing organisation (CDMO) division of custom pharmaceutical services (CPS) to Dr Reddy’s wholly-owned step-down subsidiary namely, Aurigene Pharmaceutical Services Limited (APSL) on a slump sale basis, for a consideration of US $ 72 million (around Rs 540 crore). The company, however, did not reveal the name of CDMO’s buyer.

At the time of market closing on Friday, the stock of Dr Reddy’s Laboratories Ltd was trading at Rs 2,917.00, down by 0.89 per cent against its previous close of Rs 2,943.15 on BSE.