GSK Consumer hits record high on parent company's plan to raise its stake

NEW DELHI: GlaxoSmithKline Consumer Healthcare Ltd surged 20 per cent to hit its record high in early trade on Monday after its parent GlaxoSmithKline Plc planned to raise its stake in its Indian arm to 75 per cent from 43.16 per cent through an open offer.

At 09:33 am, GSK Consumer Healthcare Ltd was locked in upper circuit, up 20 per cent at Rs 3651.80. GSK Pharmaceuticals Ltd was trading 6.3 per cent higher at Rs 2125.

“GlaxoSmithKline Plc along with its units will buy up to 1.339 crore shares, or 31.84 per cent in GlaxoSmithKline Consumer Healthcare, at 3,900 rupees per share, said HSBC Securities,” Reuters reported.

As per SEBI guidelines, promoters of stock exchange-listed companies can hold up to a maximum of 75 per cent stake. However, if the promoter shareholding rises beyond 75 per cent, then the company has to be de-listed from the bourses.