FDC Limited (BSE:531599) is looking to demerge its top-selling non-prescription brands into a separate entity and raise up to INR 12,000 million by diluting a significant minority stake, taking advantage of overwhelming investor interest in drugmakers and healthcare firms. Multiple people aware of the development told ET that the major brands to be brought under the new entity include the market leading ORS brand Electral and energy drink Enerzal. The over-the-counter (OTC) business has a revenue of around INR 3,000 million and is likely to be valued at INR 25,000 million. Feelers were sent to larger FMCG firms including Hindustan Unilever Limited (BSE:500696), The Procter & Gamble Company (NYSE:PG), Zydus Wellness Limited (BSE:531335) besides some private equity funds including ChrysCapital and Warburg Pincus LLC.

The management may also sell the brands altogether or divest a controlling stake depending on the valuations offered, said one of the sources cited above. Pricewaterhousecoopers India is working with the company on the demerger and creation of the relevant new unit. "FDC promoters wanted to keep the majority stake in this proposed demerged entity and expand the business through the strong distribution channels of FMCG majors in India," said one of the sources.

The immediate plan is to dilute about 49% stake, he added. However, the promoters also wanted to explore opportunities with PE investors. FDC, Warburg Pincus, ChrysCapital and HUL declined to comment, while mails sent to P&G and Zydus Wellness remained unanswered.