Manufacturer of auto parts Minda Corporation will file an application before the Competitive Commission of India (CCI) to increase its stake in rival Pricol Ltd to 24.5%.
In a BSE filing, Minda Corp said the company acquired 1.91 crore shares or 15.7% of equity at ₹209 a piece of Pricol in February this year. February's acquisition was done for ₹400 crore.
And on Tuesday filing, the automotive components firm said, " The Board of Directors in its meeting held on 1st May 2023, decided to file an application to Competition Commission of India for making an investment in equity shares of Pricol Limited upto 25.5% of total equity shares of Pricol at this stage".Pricol Ltd reported a consolidated profit of ₹26.76 crore in the third quarter of fiscal year 2023.
The Tamil Nadu-based company had registered consolidated PAT at ₹17.34 crore during the corresponding quarter last fiscal. For the nine months ended December 31, 2022, the consolidated PAT grew to ₹94.88 crore from ₹37.95 crore registered in the same period last financial year.
Priocol is a debt-free company and has a cash flow worth ₹112.2 crore.
It is the second-largest manufacturer of instrument clusters and fuel level sensors for two and three-wheeler applications.
According to CNBC-TV18, Pricol has a 50% market share in two-wheeler and 70% in the CV segment.
