Micro Technologies, a BSE-listed provider of security and surveillance solutions, intends to raise over Rs 300 crore by selling stake in two subsidiaries.

The proceeds of the stake sale would be used to pare overall debt of Rs 300 crore and unlock value in group companies.

The company has initiated discussions with several private equity players to divest up to 35 per cent in its majority owned units Micro Secure Solutions and Micro Retail, Aditya Sekhar, Chairman and Managing Director, told Business Line .

“From being our subsidiaries, we want to make both Micro Secure and Micro Retail promoter driven companies. In the process, we wish to establish the individual brands of the two subsidiaries and ensure that they are no longer heavily dependent on the Micro Technologies brand,” said Sekhar.

Micro Retail operates a chain of about 250 retail shops that provide electronic security, software and messaging products for vehicle, premises and other assets. Micro Secure Solutions sells products focusing on protecting commercial and residential premises. The company intends to raise about Rs 150 crore each in Micro Secure and Micro Retail. “Over the next 3-5 years, we intend to list both Micro Secure and Micro Retail. We will have three listed entities then, in addition to the parent Micro Tech,” he said.

Independent consultant

Micro Tech is also scouting for an independent consultant to value the entire bouquet of its products and services, said Shekar. It sells more than 350 security products in across 30 countries.

adith.charlie@thehindu.co.in

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