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GlaxoSmithKline (GSK), aiming to consolidate its presence in the fast-growing Indian drug market, has secured a clearance from the Foreign Investment Promotion Board (FIPB) for investing Rs 6,400 crore to take 24.33 per cent more in its India arm.
Last month, the Singapore subsidiary of the UK-based drug maker initiated an open offer to increase its stake in GlaxoSmithKline Pharmaceuticals Ltd to 75 per cent from 50.7 per cent. At the offer price, the potential total value of the transaction is pegged at Rs 6,400 crore, according to the company’s FIPB proposal. The open offer will remain open from February 7 to February 21.
In February last year, GSK raised its stake in its listed Indian consumer healthcare subsidiary, GlaxoSmithKline Consumer Healthcare, to 72.5 per cent from 43.2 per cent for $901 million.
GSK’s Indian subsidiary makes and markets pharmaceuticals and vaccines across multiple therapeutic areas, including respiratory, cardiovascular, oncology, anti-infectives and dermatology. It employed around 5,000 people and generated Rs 2,600 crore in turnover in the financial year ended December. In November, GSK announced plans to build a new factory in the country with an investment of Rs 864 crore. The sector attracted foreign investment worth Rs 5,956 crore ($1.08 billion) during April-October. In September, the government cleared the $1.8-billion proposal of US’ generic drug maker Mylan for acquiring Bangalore-based Agila Specialties, a Strides Arcolab arm.
