DRIVIN G ROWTH - Dr. Reddy's
DRIVIN G ROWTH - Dr. Reddy's
DRIVIN G ROWTH - Dr. Reddy's
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60<br />
management discussion<br />
and analysis<br />
approval of the shareholders at the 17th<br />
annual general meeting held on September<br />
24, 2001.<br />
On April 11, 2001, the company<br />
completed its initial US public offering or<br />
US-IPO of 13,225,000 American Depository<br />
Shares (ADSs) representing 6,612,500<br />
equity shares, (post sub division<br />
13,225,000 equity shares of Rs. 5/- each),<br />
par value Rs. 10 per share at a price of<br />
US$ 10.04 per ADS. This included the<br />
exercise of the underwriters over an<br />
allotment option consisting of 1,725,000<br />
ADSs, representing 862,500 equity shares<br />
(post sub division 1,725,000 equity shares<br />
of Rs. 5/- each).<br />
The gross receipt of this US-IPO was US$<br />
132.78 million. Payment of the<br />
underwriting discount, commissions and<br />
expenses of the offering amounted to<br />
US$ 9.82 million. Thus, the net proceeds<br />
from the offering was US$ 122.96 million.<br />
<strong>Dr</strong>. Reddy’s has used the ADR proceeds<br />
to liquidate some high cost debt liabilities,<br />
which has helped to substantially reduce<br />
the Company’s annual interest expenditure.<br />
The balance amount of US$ 50.07 million<br />
has been invested in bank deposits.<br />
For the period 2001-02, <strong>Dr</strong>. Reddy’s was<br />
ranked among the top 10 performing IPOs,<br />
with 89 per cent returns.<br />
RESERVE AND SURPLUS<br />
ADDITION OF SHARE PREMIUM<br />
account of Rs. 5,716.6 million was due to<br />
issue of ADS net of share issue expenses<br />
amounting to Rs. 463.9 million. On March<br />
31, 2002 the total reserves of the Company<br />
were Rs. 14,197.3 million as compared to<br />
Rs. 5,216.1 million for the previous year.<br />
LOAN FUNDS<br />
ON MARCH 31, 2002 the secured<br />
loans of the Company stood at Rs. 53.0<br />
million and unsecured loans stood at<br />
Rs. 85.2 million. Most of the secured loans<br />
were repaid by the Company during the<br />
year.<br />
FIXED ASSETS<br />
DURING THE YEAR, the Company<br />
added Rs. 1,048.7 million to its gross block<br />
of assets including addition to plant and<br />
machinery of Rs. 508.1 million. The<br />
Company invested Rs. 220.7 million in<br />
buildings. The Company also invested<br />
Rs. 124.6 million in laboratory equipments.<br />
The projects which were set up during the<br />
year were the technology development<br />
centre and biotech project Phase-I along<br />
with some regular capex expenditure for<br />
enhancement of existing production<br />
facilities.<br />
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002