Auto component maker Minda Corporation on Tuesday announced that it will file an application before the Competitive Commission of India (CCI) to increase its stake in rival firm Pricol Ltd to 24.5 per cent.

On February 17, Minda Corp had acquired 1.91 crore shares or 15.7 per cent of equity in Coimbatore-based auto component manufacturer Pricol for a cash consideration of ₹400 crore. Minda Corp had then informed that the acquisition is purely a financial investment in nature, and that as of now, the company will remain a significant minority shareholder.

In its Tuesday filing, Noida-based Minda Corp said, “The Board of Directors in its meeting held on May 1, 2023, decided to file an application with the CCI for making an investment in equity shares of Pricol Ltd up to 24.5 per cent of total equity shares, at this stage.”

As of March 2023, the promoter and promoter group held 36.53 per cent of holding on Pricol while public shareholding stood at 63.47 per cent.

In its February report, rating agency Crisil had said it does not anticipate any major impact on account of Minda Corp’s minority stake acquisition in the near term, as management control and majority shareholding of Pricol continue to vest with the existing promoters.

During an investor call in February, the management of Pricol also said Minda’s acquisition is no cause for alarm and that Pricol is committed to its business.

“We want to create value for all of our stakeholders in a quest to achieve Vision 2025. We intend to remain in control of Pricol, by legal means, by financial means, or every other means for which we have strategies in place. 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,” Vikram Mohan, MD, said during the conference call with investors.

Shares of Pricol closed 2 per cent lower at ₹244.95 apiece on the NSE on Tuesday, while that of Minda Corp closed flat at ₹283.

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