Bilcare stock down as subsidiary plans to sell 26% stake

MUMBAI: Bilcare shares fell five per cent as its subsidiary Bilcare Technologies plans to sell around 26 per cent stake to a strategic or financial partner to raise around Rs 200-300 crore to fund its future growth and market its various products across the globe.

"Bilcare, with an enterprise value of around $200 million, is looking at raising around Rs 250-300 crore through this stake sale. This capital will help it reduce its debt pile it carries on account of its acquisition of Ineos in 2010," said a senior company official.

The company has mandated financial service provider Tata Capital to look for a partner.

Bilcare has invested around $100 million in the core technology over the past 5 years. Bilcare Technologies has developed non-clonable identity or nCID chips for anti-counterfeiting and tracking products ranging from pharmaceuticals to liquor. It also helps companies in e-commerce, m-commerce, e-governance to track spurious and counterfeit goods.

At 09:40 a.m.; the stock was locked at 5 per cent lower circuit at Rs 101.55 on the BSE on low volume.