Minda Corp acquires 15.7% stake in Pricol; shares trade lower | Mint
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Business News/ News / India/  Minda Corp acquires 15.7% stake in Pricol; shares trade lower
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Minda Corp acquires 15.7% stake in Pricol; shares trade lower

Minda Corp shares were trading more than a per cent lower on the BSE in Friday's afternoon deals, whereas Pricol shares shed over 4%

Photo: iStockphotoPremium
Photo: iStockphoto

Minda Corporation Limited on Friday informed that it has acquired 1,91,40,342 equity shares of Pricol Limited (Pricol) representing 15.70406% of the Pricol’s total issued and paid-up equity share capital at an average price of 208.9 per share aggregating to 400 crore. Minda Corp shares were trading more than a per cent lower at 211 apiece on the BSE in Friday's afternoon deals whereas that of Pricol shed more than 4% to 199 per share.

The acquisition has been completed on February 17, 2023 in cash and the stake has been bought via open market. “This is merely a financial investment without providing the Company any special rights in Pricol Limited other than the rights as a shareholder of Pricol Limited. This is an open-market transaction and no prior approvals have been obtained," the auto component company Minda Corp announced in an exchange filing today.

1,91,40,342 equity shares have been acquired representing 15.7% out of total 12,18,81,498 equity shares based on Shareholding Patter of Pricol Limited as on December 31, 2022.

Pricol Limited is in the automotive components and products/equipments business and is listed on the BSE Limited and the National Stock Exchange of India Limited. Basis the audited financial statements of Pricol Limited for the year ended March 31, 2022, the consolidated turnover was 1553.5 crore. Pricol was incorporated on May 18, 2011 and has generated consolidated turnover of 1553.5 crore, 1420.9 crore and 1254.3 crore in FY 22, FY 21 and FY 20, respectively.

Pricol is the largest player in the two-wheeler instrument cluster business, and Minda Corp follows in second position. If Minda is able to secure a stake in Pricol, it could give the company a further consolidation in its market share in the instrument clusters business.

Earlier today, Vikram Mohan, managing director and founder of the Coimbatore-based Pricol had said that the promoter family of Pricol Ltd will not sell any shares to Minda Corp which is reportedly eyeing an up to 16% stake in the company. The promoter family has a 37% stake in the business.

 

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Published: 17 Feb 2023, 12:28 PM IST
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