Dr Reddy's measures for success

Investor presentations for an 11.5 million unit issue began in Asia yesterday (Thursday), with final pricing provisionally scheduled for April 11 after the completion of roadshows in Europe and the US next week. With Merrill Lynch as lead manager, the company is hoping to raise about $158 million based on today's close share price of Rp1,285 ($27.59). Each ADR unit equals two shares and the overall offering will comprise about 18% of the company's share capital. With ABN Amro and CLSA as co-managers, there is also a 15% greenshoe.

India's fourth largest pharmaceuticals company by market capitalization, Dr Reddy's is hoping to become the country's first this year to venture into the international equity markets and complete a full New York Stock Exchange (NYSE) listing. But bankers believe that its decision to launch a straight equity deal at a time of continuing market uncertainty remains well founded.