DR REDDYS LABORATORIES LTD — Capital/Financing Update 2024

Sep 27, 2024

September 27, 2024

National Stock Exchange of India Ltd. (Scrip Code: DRREDDY-EQ) BSE Limited (Scrip Code: 500124) New York Stock Exchange Inc. (Stock Code: RDY) NSE IFSC Ltd (Stock Code: DRREDDY)

Dear Sir/Madam,

Sub: Disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

This is in furtherance to our intimation dated July 27, 2024, wherein we have informed that the Board of Directors of the Company has approved the fund infusion by way of investment in preference shares of Dr. Reddy's Laboratories SA, Switzerland ("DRL SA"), a wholly-owned subsidiary of the Company, upto an amount of GBP 500 million (USD 640 million).

In this connection, we further inform that the Company has made an investment of USD 620 million in line with above intimation and DRL SA has allotted 6,200,000 non-convertible preference shares each with a nominal value of USD 100 to the Company on September 27, 2024.

The details required under Regulation 30 of the SEBI Listing Regulations, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, with respect to the above fund infusion is given in Annexure enclosed herewith.

This is for your information and records.

Thanking you.

Yours faithfully, For Dr. Reddy's Laboratories Limited KUMAR RANDHIR Digitally signed by KUMAR RANDHIR SINGH

Date: 2024.09.27 19:25:05 +05'30'

K Randhir Singh Company Secretary, Compliance Officer and Head-CSR

Encl: as above

SINGH

Annexure

Disclosure under Part A Para A(i) of Schedule III read with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015

Sl.	Particulars	Description
No1	Name of the target entity, details in brief suchas size,turnover etc.	Dr. Reddy's Laboratories SA, Switzerland,("DRLSA")a wholly owned subsidiary of the Company.Thefund infused by the Company into DRL SA will beused for the acquisition of Nicotinell® and relatedbrands by way of acquisition of all of the quotas ofNorthstarSwitzerlandSARLincorporatedinSwitzerland owned by the Haleon Group,as intimatedby our disclosure dated June 26, 2024.The turnover of DRL SA for CY2023 was USD 392million.
2	Whether the acquisition would fall withinrelated party transaction(s) and whether thepromoter/ promoter group/ group companieshave any interest in the entity being acquired?If yes, nature of interest and details thereofand whether the same is doneat "armslength"	The investment in DRL SAis a related partytransaction, as DRL SAis a wholly owned subsidiaryand accordingly a related party to the Company. Theinvestment is done based on valuation report of anIndependent Valuer and on arm's length basis. Exceptas stated above, the promoter/ promoter group/ groupcompanies have no interest in DRL SA.
3	Industry to which the entity being acquiredbelongs	Pharmaceutical
4	Objects and effects of acquisition (includingbut not limited to, disclosureof reasons foracquisition of target entity, if its business isoutside the main line of business of the listedentity)	The fund infused by the Company into DRL SA willbe used by the said wholly-owned subsidiary for theacquisition of Nicotinell® and related brands by wayof acquisition of all of the quotas of NorthstarSwitzerlandSARLincorporatedinSwitzerlandowned by the Haleon Group.
5	Briefdetailsofanygovernmentalorregulatoryapprovalsrequiredfortheacquisition	Not applicable.
6	Indicative time period for completion of theacquisition	DRL SAhas allotted6,200,000 non-convertiblepreference shares with a contractual buyback right,each with a nominal value of USD100.00, amountingto a total USD620,000,000to the Company onSeptember 27, 2024.
7	Natureofconsideration-whethercashconsideration or share swap and details of thesame	Cash consideration
8	Cost of acquisition or the price at which theshares are acquired	Cash consideration of USD 620,000,000 towardssubscription of preferenceshares of 6,200,000 of USD100.
9	Percentage of shareholding/ control acquiredand/ or number of shares acquired	DRL SAis a wholly owned subsidiary of theCompany.

Digitally signed by KUMAR RANDHIR Date: 2024.09.27 19:25:26 +05'30'

10	Brief background about the entity acquired in	DRL SAwas incorporated on 16th of April 2007and
	termsof products/line of business acquired,	is engaged in the production of pharmaceutical and
	date of incorporation, history of last 3 years	biotechnologicalproducts,theacquisition,use,
	turnover, country in which the acquired entity	purchase and sale of goods of all kinds and in
	haspresenceandanyothersignificant	particular of intellectual property rights.
	information (in brief)	The turnover of the DRL SAfor the previous 3 years
		is as under:
		CY 2023USD 392 million
		CY 2022USD 306million
		CY 2021USD 290 million

KUMAR RANDHIR SINGH

Digitally signed by KUMAR RANDHIR SINGH Date: 2024.09.27 19:25:41 +05'30'