Bilcare’s shareholders (which includes Rakesh Jhunjhunwala) have been having a nightmarish time with the stock price having plunged 48% crash last week, in just four trading sessions between Tuesday and Friday.
After Rakesh Jhunjhunwala declared way back in 2003 that Bilcare would deliver “mind boggling returns” thanks to its innovation in the pharma industry, a lot of top-notch investors rushed in to buy the stock. Rakesh Jhunjhunwala owns 8.51% and the other major investors include Deutsche Bank (8.96%), Merrill Lynch Capital (1.67%), Monument Pte (7.48%) and UTI MFFund (1.35%).
Bilcare did live up to Rakesh Jhunjhunwala’s promise and touched an incredible high of Rs 1,830 in January 2008, giving multibagger returns to its happy shareholders. However, after that it lost its way and touched a low of Rs. 67.60 on 26th March 2013.
In the last one week itself, Bilcare has crashed to Rs 73 from Rs 143. The volumes were also high at 5 lakh shares from an average of 30,000 shares. Among the sellers was ICICI Prudential Mutual Fund which dumped 11.73 lakh shares (4.98% stake).
Expectedly, Bilcare’s management was very worried and its’ company secretary Anil Tikekar dashed off a complaint to BSE pointing out that there was a SMS campaign by a bear cartel which led to the steep fall in stock price.
Of course, noting is expected to come out of the complaint if one goes by the past experience of Zylog and several other scrips.