Noida-based auto component maker Minda Corporation on Friday informed the stock exchanges that it has acquired a 15.7% stake in Pricol for Rs 400 crore. The transaction was executed at an average price of Rs 208.9 per share.
However, Pricol denied any such acquisition. “The promoters have absolutely no intention of undertaking any secondary sale of promoter stake, nor does the company have any intent to raising equity capital of any form as the company has strong financial fundamentals and healthy cash profits that will meet the needs of capital for its future growth,” Pricol said in a filing.
Minda Corporation is said to have acquired the shares through open market purchase. It said it has acquired 19,140,342 equity shares of Pricol, representing 15.7% of its total issued and paid-up equity share capital, from the open market, at an average price of Rs 208.98 per share aggregating to Rs 400 crore. “This is merely a financial investment without providing the company any special rights in Pricol other than the rights as a shareholder of the company,” Minda Corporation said.
As of December 2022, the promoter and promoter group held a 36.5% stake in Pricol, while the public shareholding stood at 63.47%.
During the October-December quarter, Pricol reported a consolidated net profit of Rs 26.76 crore, up 54% compared with the same period a year ago. Revenues from operations stood at Rs 474.8 crore during the period.