Dr Reddy's Laboratories Limited (DRL), a leading Indian pharmaceutical company, has announced the cancellation of its Global Depositary Shares (GDS) listed on the Luxembourg Stock Exchange. All GDSs and the shares underlying them could now be freely resold without restrictions under the Securities Act, stated a company release.

The company had issued 4,301,076 GDSs representing the same number of its equity shares in a private placement in 1994 pursuant to Regulation S and Rule 144A under the Securities Act of 1993. As of May 4, 2001, there were 1,789,285 GDSs outstanding.

The release said that once the facility is terminated, the shares underlying the GDSs would be deposited in Dr Reddy's American Depositary Share (ADS) facility with Morgan Guaranty Trust Company of New York as depositary. Fees to registered holders of GDSs related to the termination of the GDS facility and subsequent deposit of the underlying shares into the ADS facility will be waived by the depositary.

It also informed that the GDS holders who wish to hold their withdrawn shares in the form of ADSs need not take action. They will receive notification with respect to their holdings of ADSs once the termination and deposit is completed, which is expected by June 6, 2001. GDS holders who wish to hold their shares directly should contact the Depositary on or before June 5, 2001.

Each ADS under the ADS facility represent one half of one share. If 1,789,285 shares are all deposited into the ADS facility, there will be 3,578,570 ADSs issued. DRL ADSs are listed on the New York Stock Exchange, and began trading on April 11, 2001.