Dr Reddy's ADR float targets to rake in only $ 200 million against an expected $ 260 million.

As many as 1.07 lakh shares changed hands in the counter on BSE.

On 13 November 2006, the company had filed a shelf registration statement on Form F-3 and preliminary supplement prospectus with the US Securities and Exchange Commission relating to a proposed offering of American Depositary Shares, or ADSs, of up to 13.5 million shares, excluding the underwriter's over- allotment option.

Dr Reddy’s Lab ADR lost 3.3% on Friday to $15.90.

On BSE, the stock had plunged 5% on Friday (17 November) to Rs 735.70 after the company said it will raise $200 million by pricing each ADR at $16 each. Just a day ahead of this announcement, Dr Reddy’s Lab ADR had plunged 5.1% on Thursday, to $16.45.

Earlier, the Dr Reddy’s Lab stock had firmed up since late-October in a firm market. From Rs 711.75 on 26 October, it had risen to Rs 795.10 on 13 November. It had eased a bit to Rs 774.50 by 16 November. Dr Reddy’s Lab quarterly net profit more than tripled in Q2 September 2006, helped by strong growth in the key US market and gains from drugs exclusivity.

The company's net profit, according to US accounting standards, rose to Rs 280 crore, from Rs 89 crore. Total revenue jumped to Rs 2,000 crore from Rs 580 crore, while revenue from its core businesses, excluding the contribution from authorised generics and acquisitions, grew 42% to Rs 820 crore.