No major surprise on GSK Pharma offer: Dipen Shan

GSK Pharmaceuticals Ltd surged to its 52-week high of Rs 2,952 in trade on Monday, after its parent GlaxoSmithKline (GSK) announced a voluntary open offer to increase its stake in its publicly-listed pharmaceuticals subsidiary in India.

Earlier in the day, London-listed GSK announced that it is going to increase stake in its Indian pharmaceutical subsidiary GlaxoSmithKline Pharmaceuticals through a voluntary open offer. GSK, which holds 50.7 per cent stake, wants to raise up to 75 per cent at a price of Rs 3,100 a share.

"We do not cover Glaxo, but overall this was along expected lines in the sense that the markets were already thinking that after GSK Consumer came up with an offer, there could be a follow-up offer from GSK Pharma and it has finally come about today. So, I do not think that there was any major surprise as far as the actual offer is concerned and markets were kind of expecting it earlier," says Dipen Shan, Senior VP-PCG Research, Kotak Securities.