Auto component maker Minda Corporation on Tuesday said that its board is approaching the Competition Commission of India (CCI) to increase its stake in automotive technology firm Pricol to upto 24.5 per cent. “We would like to update that the Board of Directors in its meeting held on 1st May 2023, decided to file an application to Competition Commission of India (CCI) for making investment in equity shares of Pricol Limited upto 24.5 per cent of total equity shares of Pricol, at this stage,” it said in a regulatory filing.
The synergy between the two companies make sense for both Minda Corporation and Pricol. “The first part is the synergy between the two companies is very well placed. Second part is the complementary way of working between the two, particularly the geographical space both the companies are having, that also makes a lot of sense, and the customer segments that they both cater to. And lastly, the value proposition would remain high with the inorganic growth which Minda is contemplating at this point of time,” said Deven R Choksey, MD, KR Choksey Investment Managers. This also will be a fruitful collaboration for Pricol that can leverage Minda’s extremely strong grasp in the area of research based innovations.
Earlier in February, Minda Corporation had said that it acquired a 15.70 per cent stake in rival Pricol for Rs 400 crore. The open market transaction took place at an average price of Rs 208.9820 per share, Minda Corp had said in an exchange filing. Pricol and Minda Corporation compete in the two-wheeler instrument cluster business.
In yet another development from Pricol, the Coimbatore-based auto component manufacturer preponed the date for its earnings announcement for the fourth quarter ended March 2023. “We would like to inform you that 76th meeting of the Board of Directors which was originally scheduled to be held on 18th May 2023 has been preponed to 10th May 2023 to consider inter alia the audited Financial Results (Standalone & Consolidated) for the Quarter and year ended 31st March 2023,” it said in a regulatory filing.