New Delhi: UK-based drug major GlaxoSmithKline Plc is knocking at the FIPB’s doors to raise stake in its India arm by acquiring an additional 24.33% for around Rs.6,400 crore.
The proposal will come up before the meeting of the Foreign Investment Promotion Board (FIPB), headed by economic affairs secretary Arvind Mayaram, on 10 January.
According to people in the know of the development, the Singapore subsidiary of the UK-based pharma firm will be buying 24.33% stake or 2.06 crore equity shares in GlaxoSmithKline through an open offer.
After purchase, the holding of the promoter group companies in the Indian subsidiary will go up to 75% from the current 50.67%. GlaxoSmithKline is already majority owned and controlled by the GSK Group.
“There the proposed transaction will not result in any change in control of the Indian arm,” people in the know told PTI. The acquisition would result in foreign exchange inflows of Rs.6,400 crore, they added.