Some shareholders of Dr Reddy's Laboratories Ltd have asked its management to split equity shares.

The stock-split would help small investors to have liquidity as the scrip was now trading at a ‘high' price, many investors conveyed to the management at the 27th annual general meeting of the Hyderabad-based company held here on Thursday.

There were also concerns about Dr Reddy's problems with its German subsidiary, Betapharm.

“What about your risky gamble of buying Betapharm? When will we get back our money?” Mr Ashok, an investor, asked Mr G.V. Prasad, Chief Executive Officer.

“We are gaining market share in Germany and we will soon turn around,” was his reply.

R&D efforts

Earlier, while addressing the shareholders, Dr K. Anji Reddy, Founder-Chairman of Dr Reddy's said research and development efforts were on for a “greater” impact on near-term earnings.

Work was in progress on over 20 products including new chemical entities (NCE).

“The foremost in the NCE programme is CETP inhibitor, which has recently moved to phase two trials,” Dr Reddy said.

Mr G.V. Prasad, Chief Executive Officer, said in the present year, focus would be on increasing operational efficiencies and creation of new capacities.

“The work on Special Economic Zone project is on. It will be commissioned by end of this year,” he added.

Dividend

The AGM approved payment of divided of Rs 11.25 per equity share of Rs 5 each (225 per cent) of the company.

Its scrip declined 1.53 per cent to end at Rs 1,543 on the Bombay Stock Exchange on Thursday.

Related Topics