Glaxo Pharma open offer oversubscribed

Promoter holding rises from 50.67% to 75%

The over $1 billion share re-purchase by UK's Glaxo Group in its Indian arm GlaxoSmithKline Pharmaceuticals has received full subscription helping the promoters increase their shareholding to 75%.

Over 23 million shares were tendered by public shareholders of GSK Pharma in the open offer, which was open between February 19 and March 5.

The voluntary open offer made by GSK was to purchase 20.61 million shares at Rs 3,100 per share amounting to Rs 6,389 crore.

Based on the shares tendered, the acceptance ratio for is expected to be around 90%. In other words, 90% of the shares tendered by shareholders are likely to be accepted by the company.

Shares of GSK Pharma were last trading at Rs 2,529, down 4.5% on BSE.

Among the four voluntary open offers made by multinational firms (MNCs) in the last one year, GSK Pharma is the only one to have received full subscription.

Buyback season	GSK Pharma is the first voluntary open offer, since 2013, to be fully subscribed
	Open offer size (Rs cr)		% of proposed	Share price  (Rs)
	Proposed	Actual		Offer price	Current price
GSK Consumer	5,221	4,805	92	3,900	4,208
Hindustan Unilever	29,220	19,174	66	600	557
Crisil Ltd	1,896	1,285	68	1,210	1,192
GSK Pharma	6,390	6,390	100	3,100	2,510
Source: BSE, Company announcements

GSK was able to acquire 24.33% stake through the open offer taking the promoter holding in the company from 50.67% to 75%, the maximum a promoter can hold in a listed firm.

GSK Pharma's voluntary open offer was the second-biggest after Unilever Plc. In June 2013, Unilever Plc had launched a voluntary open offer to buy shares worth Rs 29,220 crore. However, it was able to spend around 66% of the amount as the number of shares tendered were less than what the company was willing to buy.

GSK Consumer and Crisil are the other two MNC-promoter companies that have launched voluntary open offer in the past 15 months.

Another such open offer expected to open soon is in credit rating firm ICRA, where US-based Moody's Investor Services too has offered to buy 26.5%.