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Dr. Reddy’s Laboratories Faces Tax Reassessment Notice Post-Merger

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Dr. Reddy’s Laboratories Faces Tax Reassessment Notice Post-Merger

Dr Reddy’s Laboratories ( (RDY) ) just unveiled an update.

On April 4, 2025, Dr. Reddy’s Laboratories received a show cause notice from the Office of the Assistant Commissioner of Income Tax in Hyderabad regarding the reassessment of tax returns for the financial year 2019-2020. This notice is linked to the merger of Dr. Reddy’s Holding Limited into Dr. Reddy’s Laboratories Limited, which was approved by the National Company Law Tribunal in April 2022. The company has been asked to explain why the income should not be reassessed due to alleged tax escapement. Despite a proposed demand of over Rs. 2395 crore, Dr. Reddy’s believes there is no tax escapement and is reviewing the notice to respond appropriately. The company has also been indemnified by its promoters against any liabilities arising from the merger.

More about Dr Reddy’s Laboratories

Dr. Reddy’s Laboratories Limited is a prominent pharmaceutical company based in Hyderabad, India. The company is involved in the production and marketing of a wide range of pharmaceutical products and services, focusing on generic medications, active pharmaceutical ingredients, and proprietary products. It operates in various international markets, including the United States and Europe, and is listed on multiple stock exchanges, such as the National Stock Exchange of India, BSE Limited, and the New York Stock Exchange.

YTD Price Performance: -21.12%

Average Trading Volume: 1,999,767

Technical Sentiment Signal: Strong Buy

Current Market Cap: $10.79B

Learn more about RDY stock on TipRanks’ Stock Analysis page.

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