FIPB clears GlaxoSmithKline's Rs 6,400 cr FDI proposal

FIPB today cleared Rs 6,400 crore FDI proposal of GlaxoSmithKline to acquire additional 24.33% in 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.

Also Read: Govt retains 100% FDI in existing pharma units

The Singapore subsidiary of the UK-based GlaxoSmithKline plans to buy 24.33 percent 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, holding of the promoter group firms in the Indian subsidiary will go up to 75 percent from the current level of 50.67 percent. The open offer for tendering of shares is scheduled to remain open from February 7-21. GSK Pharma makes, distributes and trades a variety of drugs. Its portfolio includes prescription medicines and vaccines across areas such as anti-infectives, dermatology, and gynaecology.