U.K.-based pharmaceuticals major GlaxoSmithKline has approached the Foreign Investment Promotion Board (FIPB) to hike stake in its domestic arm by buying 24.33 per cent for an estimated Rs.6,400 crore.

The proposal will come up before the meeting of the FIPB, headed by Economic Affairs Secretary Arvind Mayaram, on January 10.

According to sources, the Singapore subsidiary of the U.K- based pharma firm will be buying 24.33 per cent stake or 2.06 crore equity shares in GlaxoSmithKline Pharmaceuticals Ltd through an open offer.

After purchase, the holding of the promoter group companies in the Indian subsidiary will go up to 75 per cent from the current 50.67 per cent.

GlaxoSmithKline Pharmaceuticals is already majority owned and controlled by the GSK Group. “There the proposed transaction will not result in any change in control of the Indian arm,” sources told PTI.

The acquisition would result in foreign exchange inflows to the tune of Rs.6,400 crore, they added.

The offer is scheduled to remain open between February 7 and February 21.

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