GlaxoSmithKline Consumer stock weakens after surge
Tue, 27 Nov 2012 00:58:45 -0700
The stock had skyrocketed 20 per cent to touch the upper circuit limit on Monday
Shares of GlaxoSmithKline Consumer Healthcare rose further 1 per cent on Tuesday after skyrocketing 20 per cent to touch the upper circuit limit on Monday after its UK-based parent GlaxoSmithKline announced an open offer to hike stake in the subsidiary.
The stock rose to Rs 3,894.90 in the morning before it saw some profit booking which brought it down to Rs 3,675. At the time of writing this report, the stock was ruling at Rs 3,680.
On Monday, the stock zoomed up by 20 per cent to touch the upper circuit limit of Rs 3,651.80 on the BSE. Similar movement was seen at the NSE, where the stock surged 20 per cent to Rs 3,659.20.
GlaxoSmithKline said it has offered to hike stake in its Indian subsidiary, GlaxoSmithKline Consumer Healthcare, to up to 75 per cent which would entail an outgo of over Rs 5,220 crore.
"GlaxoSmithKline (GSK) has announced a voluntary open offer to increase its stake in its publicly-listed consumer healthcare subsidiary in India (GlaxoSmithKline Consumer Healthcare), from 43.2 per cent to up to 75 per cent at a price of Rs 3,900 per share,"
the company said in a statement.
The potential total value of the transaction at the offer price is approximately Rs 5,220 crore or 591 million pounds, the company said. The offer represents a premium of about 28 per cent to GlaxoSmithKline Consumer Healthcare's closing share price on the National Stock Exchange on November 23, 2012, GSK said.
As on quarter ended September 2012, the foreign promoter of GSKCH held 43.2 per cent stake in the company while the public shareholding is at 56.84 per cent.
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