GlaxoSmithKline stock rises on open offer by parent
PTI December 16, 2013Shares of GlaxoSmithkline Pharmaceuticals on Monday rose 20 per cent after UK-based GlaxoSmithKline Plc announced a voluntary open offer to increase stake in its Indian subsidiary.
GlaxoSmithkline Pharma's stock surged 19.59 per cent to Rs 2,952-its 52-week high on BSE. On the NSE, the scrip rose sharply by 19.99 per cent to touch a one-year peak of Rs 2,952.15.
The open offer of the shares is at an attractive price, much above the current market price and is a strong indicator from the management's side towards the listed entity.
The stock would move on the way up on the open offer, said Sarabjit Kour Nangra, VP-Research, Pharma, Angel Broking. The offer, which is made pursuant to the rules of the Securities and Exchange Board of India ( SEBI), is to acquire 20,609,774 shares, representing 24.33 per cent of the total outstanding shares of the Indian company, as per the company's filing with the BSE.
Voluntary open offer for acquisition of 20,609,774 shares representing 24.33 per cent of the total voting share capital from the public shareholders of GlaxoSmithKline Pharmaceuticals by GlaxoSmithKline Pte along with GlaxoSmithKline Plc in its capacity as a person acting in concert with the acquirer, it added. The parent firm of GlaxoSmithKline Pharmaceuticals plans to increase its stake from 50.7 per cent to up to 75 per cent at an offer price of Rs 3,100 per share, a premium of 25.58 per cent from Friday's closing price of Rs 2,468.40.