GlaxoSmithKline Pharma nears three month low, falls 16% in one week

GlaxoSmithKline plc has successfully increased its stake in GlaxoSmithKline Pharmaceuticals, from 50.7% to 75%.

GlaxoSmithKline Pharmaceuticals is trading lower by 3% at Rs 2,570, extending its past four day’s fall, after the parent company GlaxoSmithKline plc said that it has successfully increased its stake in pharmaceuticals subsidiary in India and it will remain publicly-listed.

“Following the voluntary Open Offer undertaken by subsidiary, GlaxoSmithKline Pte Ltd, the company has successfully increased its stake in GlaxoSmithKline Pharmaceuticals, from 50.7% to 75%,” GlaxoSmithKline plc said in a statement.

GlaxoSmithKline Pharmaceuticals Limited will remain publicly-listed, it added.

GlaxoSmithKline Pte Ltd accepted 20.61 million shares from the shareholders of GlaxoSmithKline Pharmaceuticals, representing 24.33% of the total shares outstanding through the Open Offer, which commenced on 18 February 2014 and closed on 5 March 2014, the company said.

The stock is currently trading at its lowest level since December 13, 2013, a day before the parent company made open offer to public shareholders.

The stock opened at Rs 2,632 and touched a high of Rs 2,656 on the NSE. A combined 25,930 shares changed hands on the counter till noon deals on the NSE and BSE.

Meanwhile, since last one week, the pharmaceutical stock has underperformed the market by falling 16% from Rs 3,053, as compared to over 4% rise in benchmark CNX Nifty.