Dr Reddy’s jumps ~2% on plans to pick up 26% stake in TEQ Green Power

17 Jul 2023 , 12:16 PM

Dr Reddy’s Laboratories shares surged over 2% in early trade on July 17 after the business announced a deal to buy a 26% stake in special purpose vehicle O2 Renewable Energy IX Private Limited.

The pharmaceutical company has agreed to buy a stake in the renewable energy venture from TEQ Green Power XI Pvt Ltd and O2 Power SG Pte Ltd. The corporation will own 26% of the SPV, with the remainder controlled by TEQ Green Power XI.

The investment is aimed at assuring the consumption and supply of renewable energy through solar and wind power facilities connected to the captive (Inter-State Transmission System) ISTS.

Furthermore, investors are anticipating the announcement of the drugmaker’s quarterly results on July 26. Most brokerages forecast an increase in the drugmaker’s earnings for the April-June quarter, supported by a substantial contribution from sales of the blockbuster drug’s generic, Revlimid, and good growth in the US market.

At around 12.13 PM, Dr Reddy’s was trading 2.25% higher at Rs 5,206.45 per piece, against the previous close of Rs 5,092.05 on NSE. The counter touched an intraday high and low of Rs 5,215 and Rs 5,093, respectively.

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