FIPB approves GSK's Rs 6,400-cr FDI proposal

Promoter stake to go up to 75 per cent

 The FIPB on Monday cleared Rs 6,400 crore FDI proposal of GlaxoSmithKline to acquire additional 24.33 per cent stake in its India arm.

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

The Singapore subsidiary of the UK-based GlaxoSmithKline 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, 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, 2014.

India allows 100 per cent FDI in pharma sector through automatic approval route in the new projects, but foreign investment in the existing companies is allowed only through the FIPB approval. 

 Vodafone FDI

proposal at CCEA 

Union Finance Ministry on Monday said the Rs 10,141-crore proposal of Vodafone to buyout minority stake in its Indian arm has been referred to the Prime Minister headed Cabinet Committee on Economic Affairs (CCEA) for approval.

It also said the government has approved five proposals of foreign direct investment (FDI) amounting to Rs 1,133.41 crore. 

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