Founder-Chairman of Dr Reddy’s Laboratories Ltd, Dr K. Anji Reddy, has transferred 39.99 per cent of his stake in the promoter-holding company to APS Trust floated by his family.
Before the transfer of stake, Dr Reddy held 40 per cent of the stake in Dr Reddy’s Holding Ltd. Post transfer of stake, he now holds just 100 shares, according to a disclosure to the NSE.
Earlier in May this year, the promoter of the Hyderabad-based company sought an approval from SEBI to exempt the trust from the clause of making an open offer to the shareholders in the event of transfer of stake.
The reason given then was that the transaction was part of the private arrangement to ‘streamline succession’.
Absence at AGM added fuel
Dr Reddy’s absence at the company’s annual general meeting held here last week for the fist time in the history of company also fuelled rumours about the exit of the promoters.
Along with Dr Reddy some of his family members also transferred their respective stakes to the trust.
His son and Managing Director of the company, Mr K. Satish Reddy transferred 16.61 per cent of his total 29.98 per cent stake, while Mr G.V. Prasad, his son-in-law, 5.43 per cent stake out of his 8.89 per cent stake.
When contacted, an official spokesperson of Dr Reddy’s told Business Line that there was nothing to comment as the transaction was a ‘private matter’.
The promoters hold 25.57 per cent stake in Dr Reddy’s Laboratories out of which 23.39 per cent was through Dr Reddy’s Holdings.
Dr Reddy’s scrip was almost flat on the BSE on Friday and ended at Rs 1,621.10.