Dr Reddy’s to issue 520 cr bonus debentures

Dr Reddy’s to issue 520 cr bonus debentures

New Delhi: Dr Reddy’s Laboratories on Wednesday said it will issue bonus debentures to its shareholders worth up to Rs520 crore on 18 March 2011.

In a filing to the Bombay Stock Exchange (BSE), the company said its shareholders are entitled to receive six unsecured redeemable non convertible bonus debentures of Rs5 each for every existing fully paid equity share of Rs5 each.

The quantum of the non-convertible fully paid bonus debentures will be “not less than 06 crore and not exceeding 520 crore", it said.

The tenor of the bonus debentures will be 36 months from the date of allotment, it said adding they would be redeemable at par in full at the end of the period.

“The Board of Directors has also fixed 9.25% as the coupon rate on these debentures, payable annually," Dr Reddy’s said.

The company said it plans to list the bonus debentures on the National Stock Exchange and BSE.

Shares of Dr Reddy’s Laboratories on Wednesday closed at Rs1619.55 on the BSE, up 0.94% from its previous close.

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