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FIPB clears Glaxo’s proposal to hike stake in local unit

GlaxoSmithKline Pharmaceuticals is already majority owned and controlled by the GSK Group.

New Delhi | Published: January 14, 2014 4:48:01 am

The Foreign Investment Promotion Board (FIPB) on Monday cleared Rs 6,400 crore foreign direct investment proposal of GlaxoSmithKline (GSK) to acquire additional 24.33 per cent stake in its India arm.

“The proposal of GlaxoSmithKline has been cleared,” said a source after the meeting of Foreign Investment Promotion Board, headed by economic affairs secretary Arvind Mayaram.

The Singapore subsidiary of the British pharma major plans to buy 24.33 per cent stake or 2.06 crore equity shares in GlaxoSmithKline Pharmaceuticals Ltd through an open offer. The acquisition will result in foreign exchange inflow of Rs 6,400 crore, as per the firm’s proposal to FIPB. GlaxoSmithKline Pharmaceuticals is already majority owned and controlled by the GSK Group.

After the purchase, the holding of the promoter group firms in the Indian subsidiary will go up to 75 per cent from the current level of 50.67 per cent. The open offer for tendering of shares is scheduled to remain open from February 7-21.

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