Tamil Nadu-based automotive technology and precision engineered solutions company Pricol has said it has prepared a war chest for making all forms of investment to ensure that the company remains in the hands of the current promoters.
Pricol hit the headlines last week when Noida-based auto component maker Minda Corporation acquired a 15.7% stake for Rs 400 crore from the open market, triggering rumours of a hostile takeover.
Vikram Mohan, MD, Pricol, said they have worked out multiple strategies to ensure that the company remains in the control of the present promoter group, the Mohan family.
“I am open to making all forms of investment to ensure that this company that was founded by my father 50 years ago remains proudly in the hands of the same family. This is a commitment that I have made to every stakeholder of ours in every forum that I was able to get. I have prepared the family and well-wishers have prepared a war chest if it comes to that,” he said.
He said he had left no stone unturned to protect the rights and ensure control of this company while also got the support of all my stakeholders to prevent any such takeover.
“If they cross the 24%, 25% mark, they will also be breaching regulatory course, which will give us protection measures. We have evaluated all of our options, and we keep all of our cards open to ensure that we remain in control of this company. So, we will ensure that we remain in control of Pricol, and we will take necessary actions when there are counter actions taken, and we will not take any major reactions at this point in time,” he said.
Answering questions on whether he is open to increase the stake of promoters which is below 37% at present, via creeping acquisition route as permitted by the SEBI, Mohan said it will be one of the strategies. “But we will do it on our terms, not when markets are volatile or a hostile situation is potentially facing us. We believe that this investment made by Minda Corporation is purely a financial investment as stated by them as the purpose of this investment, and we believe it does not, is no cause for alarm or worry at this time,” he said
According to him, there has been overwhelming support over the past six days from all of the key customers endorsing their loyalty to their organisation, overwhelming support from every section of our workforce, from workmen to staff, to managers and senior leadership, endorsing their support to the current leadership team.
“We have embarked on significant capacity enhancement drives in order to cater to the new businesses that have come our way, and we will be investing close to `600 crore over the next few quarters in order to create additional capacity to cater to additional business that we have won,” he said.
On the question whether PHI Capital which also holds stake in Minda would continue to stay invested in the company, he said that they hold a 5.73% stake in the company and have endorsed the present management. They will continue to stay invested in the company for the short to medium term, he added.
As of December 2022, the promoter and promoter group held a 36.5% stake in Pricol, while the public shareholding stood at 63.47%. Out of it, MFs held 4.29% stake, FIIs 12% and resident indviduals 22.92%.