FIPB to decide on GSKs Rs 6,400-crore FDI plan today

Written by PTI | New Delhi | Updated: Jan 13 2014, 14:09pm hrs
GlaxoSmithKlineSingapore subsidiary of the UK-based GlaxoSmithKline has proposed to buy 24.33% stake in GlaxoSmithKline Pharmaceuticals through an open offer.
FIPB will take up on Monday GlaxoSmithKline's Rs 6,400 crore FDI plan, the largest foreign investment proposal in the pharma sector this fiscal.

There are seven other FDI proposals related to the pharma sector that are scheduled to be taken up by the Foreign Investment Promotion Board (FIPB), headed by economic affairs secretary Arvind Mayaram.

According to sources, the Singapore subsidiary of the UK-based GlaxoSmithKline proposes to buy 24.33% stake or 2.06 crore equity shares in GlaxoSmithKline Pharmaceuticals through an open offer.

The acquisition would result in foreign exchange inflows to the tune of R6,400 crore, they added.

FDI inflow in the pharma sector during the April-October period totalled R5,956 crore.

In September, the government cleared the R5,168-crore deal of the US-based Mylan for acquiring Bangalore-based pharma firm Agila Specialties, a subsidiary of Strides Arcolab.

In 2008, Japanese firm Daiichi Sankyo had bought out the country's largest drug maker Ranbaxy for $4.6 billion.

US-based Abbot Laboratories had acquired Piramal Health Care's domestic business for $3.7 billion.

Other pharma sector proposals that are on FIPB agenda for January 13, include Laurus Labs (Hyderabad), Hospira Pte (Singapore) and KKR Floorline Investments PTE (Singapore).

The FIPB is taking up the pharma sector proposals against the backdrop of the government deciding to retain the policy of allowing 100% foreign investment in the existing pharma firms, brushing aside concerns about non-availability of affordable drugs in view of MNCs takeovers. PTI