Shares of Pricol Ltd rose 1.85 per cent to ₹503 after the company announced today that its subsidiary, Pricol Precision Products (PPPL), would acquire the injection moulded plastic component solutions division of Sundaram Auto Components Ltd (SACL) for a total consideration of ₹215.3 crore.
SACL, a wholly owned subsidiary of TVS Motor Company, specialises in manufacturing automotive plastic components for various vehicles, including two-wheelers, four-wheelers, and commercial vehicles.
According to its stock exchange filing, the acquisition is slated to be completed by January 31, 2025, contingent upon the fulfilment of certain conditions..
In addition to the acquisition, Pricol’s board approved an investment of up to ₹120 crore in PPPL and a corporate guarantee of up to ₹250 crore for loans to be obtained by the subsidiary. The company also plans to invest up to 26 per cent in PQSI Digital, a firm focused on Industry 4.0 products.