GSK consumer promoters raise stake to 72.5%

MUMBAI: The overseas promoters of GSK Consumer Healthcare have succeeded in increasing their stake in the Indian subsidiary to 72.46% from 43.16%, according to market sources.

Nearly 1.23 crore shares were tendered against the offer of 1.34 crore shares. The promoters, GlaxoSmithKline, Horlicks and GlaxoSmithKline Plc, launched the open offer at Rs 3,900 per share to raise their stake in the company to 75% from 43.16% with an investment of Rs 5,222 crore.

The promoters have succeeded in buying nearly 29.29% of the shares which raised their stake to 72.46% in the Indian subsidiary. Shares of GSK Consumers have risen nearly 26% since the announcement of the open offer on November 26 last year. GSK Consumer stock ended at Rs 3,812, down 0.29%, on Monday.

Arisaig Partners Asia, with a 5.01% stake, was the biggest public shareholder in the company as on December 31, 2012. Life Insurance Corporation, General Insurance Corporation and HDFC Standard Life Insurance with 3.97%, 3.09% and 2.78%, respectively, were the other stakeholders. After the offer, the public share holding has been reduced to 27.54% —just above the Sebi specified minimum public holding norm of 25%.

It is not uncommon for promoters to raise stake in listed entities through open offers. A few months ago, Tata Steel launched voluntary open offers to raise stake in its subsidiaries Tinplate Company of India and Tata Sponge Iron. In the process Tata Steel raised its stake in Tinplate to 75% from 61% and in Tata Sponge Iron to 54.5% from 43.2%.