UK-based pharmaceuticals major GlaxoSmithKline has approached the FIPB to hike stake in its domestic arm by buying 24.33 per cent for an estimated 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 sources, the Singapore subsidiary of the UK- based pharma firm will be buying 24.33 per cent stake or 2.06 crore equity shares in GlaxoSmithKline Pharmaceuticals Ltd through an open offer. After purchase, the holding of the promoter group companies in the Indian subsidiary will go up to 75 per cent from the current 50.67 per cent.
The acquisition would result in foreign exchange inflows to the tune of Rs 6,400 crore, they added.
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 sources, the Singapore subsidiary of the UK- based pharma firm will be buying 24.33 per cent stake or 2.06 crore equity shares in GlaxoSmithKline Pharmaceuticals Ltd through an open offer. After purchase, the holding of the promoter group companies in the Indian subsidiary will go up to 75 per cent from the current 50.67 per cent.
The acquisition would result in foreign exchange inflows to the tune of Rs 6,400 crore, they added.