GSK Pharma slumps ahead of closure of open offer

GlaxoSmithKline Pharmaceuticals slumped 7.17% to Rs 2,747.85 on BSE as the open offer made by the Britain-based parent to acquire additional stake in the Indian company ends today, 5 March 2014.

Meanwhile, the BSE Sensex rose 67.13 points, or 0.32%, to 21,276.86.

On BSE, 19,000 shares were traded in the counter, compared with an average volume of 11,425 shares in the past one quarter.

The stock hit a high of Rs 2,963.50 and a low of Rs 2,725 during the day. The stock hit a record high of Rs 3,054.40 on 3 March 2014. The stock hit a 52-week low of Rs 2,091.30 on 5 March 2013.

 

The stock had underperformed the market over the past one month till 4 March 2014, falling 0.82% compared with the Sensex's 4.94% rise. The scrip had, however, outperformed the market in past one quarter, rising 14.95% as against Sensex's 2.42% rise.

The large-cap company has an equity capital of Rs 84.70 crore. Face value per share is Rs 10.

In December 2013, GlaxoSmithKline Pte along with GlaxoSmithkline plc announced a voluntary open offer to the public shareholders of GlaxoSmithkline Pharmaceuticals (GSK Pharma) to acquire 2.06 crore equity shares, representing 24.33% stake of the total voting share capital of the company, at Rs 3,100 per share.

GlaxoSmithkline plc currently holds 50.67% stake in GlaxoSmithkline Pharmaceuticals. Its stake will rise to 75% if it gets the entire 2.06 crore equity shares through the voluntary open offer. The global healthcare major planned to invest Rs 6390 crore to raise its stake in its Indian subsidiary.

Shares of GSK Pharma have declined 6.13% from Rs 2,927.40 on 16 December 2013 when the open offer was announced.

GSK Pharma's net profit fell 15.61% to Rs 116.88 crore on 2.74% decline in total income to Rs 685.04 in Q4 December 2013 over Q4 December 2012.

GlaxoSmithkline Pharmaceuticals is engaged in the business of manufacturing, distributing and trading in pharmaceuticals. The company's product portfolio includes prescription medicines and vaccines. Its prescription medicines range across therapeutic areas such as anti-infectives, dermatology, gynaecology, diabetes, oncology, cardiovascular diseases and respiratory diseases.

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