GlaxoSmithKline Pte Ltd, a Singapore based subsidiary of GlaxoSmithKline Plc., has decided to increase its stake in GlaxoSmithKline Pharma (GSK), India by 24.33 per cent by acquiring 20,609,774 equity shares from the public shareholder through voluntary open offer. The acquisition price is fixed at Rs.3,100 per share. The open offer price will be payable in cash by the GlaxoSmithKline Pte. in accordance with the provisions of Regulation 9(1) (a) of the SEBI (SAST) Regulations, 2011. At present acquiring company is holding equity stake of 50.67 per cent in Indian company. HSBC Securities and Capital markets (India) Pvt Ltd is manager to the Open Offer.
GSK shares went up by 18.9 per cent Rs.466 each on Bombay Stock Exchange after the announcement to Rs.2,935.05 in the morning session.
GSK, a Rs.2,500 crore MNC belonging to GlaxoSmithKline, plc, has recently announced its investment plan of Rs.864 crore in India and the company has invested Rs.1,017 crore over the last decade. The facility is expected to be operational by 2017.When complete the new factory will make pharmaceutical products for the Indian market at a rate of up eight billion tablets and one billion capsules a year. The company is a leader in dermatology and vaccines, with vaccines such as Rotarix against severe diarrhoea, and Synflorix used to protect children against streptococcus pneumonia.