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Macedonian (MK) Dr. Reddy’s Laboratories on Saturday declared that the company will split its stock in the ratio of 1:5 meaning that for each stock with a face value of Rs 5, there will now be 5 shares with a face value of Re 1.
“Sub-division/ split of each equity share of the Company having face value of Rs.5/- (Rupees five only) each, fully paid-up, into 5 (Five) equity shares having face value of Re.1/- (Rupee one only) each, fully paid-up, by alteration of the Capital Clause of the Memorandum of Association of the Company,” the company informed the exchanges.
The record date for the purpose of the stock split has not yet been informed and will be intimated at a later date.
Additionally the company has also announced that each American Depositary Share (ADS) will still represent 1 equity share. As a result, the number of ADSs held by each American Depositary Receipt holder will increase in proportion to the increase in equity shares.
This will be the first time in recent years that Dr. Reddy’s will be splitting its stock. Till date, the company has split the face value of its shares only once in October 2001 from Rs 10 to Rs 5 per share.
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The Hyderabad-based pharma company has announced that its June quarter profit after tax fell 0.8% year-on-year (YoY) to Rs 1,392 crore while revenue jumped 13.9% to Rs 7,673 crore.
The company's board has also approved fund infusion by way of investment in preference shares of Dr. Reddy’s Laboratories SA, Switzerland, a wholly-owned subsidiary of the Company, upto an amount of GBP 500 million. The fund will be used for acquisition of Nicotinell and related brands by way of acquisition of all of the quotas of Northstar Switzerland.
Shares of Dr Reddy's Lab had ended Friday's session 0.55% higher at Rs 6,892 on BSE.
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