Bilcare hits lower circuit, again
Bilcare continues to get frozen on the 5% lower circuit; it was frozen yesterday at Rs.101.55 and today at Rs.96.50, with only sellers on the counter.
Yesterday, the stock fell as the market as the market was not happy with its decision to sell around 26% 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.
Today, the stock is down after United Bank of India is said to have declared the company as a ‘wilful defaulter’ and has slapped a notice on the company for loan recovery.
The company provides packaging solutions to pharma and healthcare companies. It has a huge chunk of debt, which at end of 30th Sept 2012 stood at Rs.1752 crore. At end of Q3FY13, promoters held 35.82% stake of which 9.31% is pledged. Rakesh Jhunjhunwala holds 8.51% stake.