UK's largest drug-maker, GlaxoSmithKline (GSK) has infused more capital in its Indian subsidiary to increase its stake from 43.2 per cent to 72.5 per cent.
The additional investment in the Indian unit indicates that the company is looking to expand its presence in the emerging Indian market. David Redfern, GSK's chief strategy officer pointed out that the move will allow the company to increase its exposure to the Indian market.
"It is a significant vote of confidence in the long-term growth prospects of our consumer healthcare business in India," he said.
The leading drug-maker had announced its plans to increase stakes in both its units in India and Nigeria in November in the previous year. The parent company offered Rs. 3,900 per share to increase its stake in Indian-based GlaxoSmithKline Consumer Healthcare Ltd from January 17 to January 30. The payment for the deal is due before February 13.
The Indian unit of the company sells popular brands such as health drink Horlicks, malt-based drink Boost and a multi-vitamin drink VitaHealth. Shares of the company were 2 per cent lower at Rs. 3,750 after the parent company announced the open for acquiring shares.
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