Dr Reddy's gets shareholder's nod for amalgamation of Dr Reddy's Holdings into company

Drug major Dr. Reddy's Laboratories on Friday said it has received shareholders nod for proposed amalgamation of Dr. Reddy's Holdings Ltd into the company. The resolution for the scheme was approved by 99.98 percent votes of the total 13.10 crore votes cast by equity shareholders of the company, it said in a regulatory filing.

21,026 votes, which accounted for the rest 0.02 percent, were posted against the resolution, it added. The voting was conducted as per the directions of the Hyderabad Bench of the National Company Law Tribunal on November 22, 2019.

The meeting of equity shareholders was convened on January 2, 2020. The board of Dr. Reddy's Laboratories had on July 29, 2019, approved the amalgamation of Dr. Reddy's Holdings Ltd, an entity held by the promoter group which holds 24.88 percent equity shares of Dr. Reddy's Laboratories, into the company.

The scheme would lead to simplification of the shareholding structure and reduction of shareholding tiers, the company had said. "The Promoter Group cumulatively will continue to hold the same number of shares in the Company, pre and post the amalgamation," it had said. Shares of Dr. Reddy's Laboratories on Friday settled at Rs 2,888.90 on the BSE, up 0.87 percent from its previous close.