India's Minda Corp acquires 15.7% stake in Pricol for $48 mln (updated)

Minda

17/02/2023 08:22

(Adds details)
       Feb 17 (Reuters) - Indian automotive components maker Minda Corporation
Ltd  MINC.NS  on Friday said it acquired a 15.70% stake in rival Pricol Ltd
 PRCO.NS  for 4 billion rupees ($48.3 million).
    The open market transaction took place at an average price of 208.9820
rupees per share, Minda corp said in an exchange filing.
    "This is merely a financial investment without providing the company any
special rights in Pricol Ltd other than the rights as a shareholder," Minda
said.
     Media reports on Feb. 16, had said Minda is looking to acquire up to 15.7%
stake in Pricol.
     Ahead of Minda's announcement on Friday, Pricol said it "has no
information" on media reports of the said deal and the parent has "absolutely no
intent in undertaking any secondary sale of promoter’s stake."
    "Promoter group stands absolutely committed to the company and its future
prospects," Vikram Mohan, managing director of Pricol, said in a statement,
adding that the company was net debt free and promoters and the management are
bullish about its growth prospects.
    Minda Corp and Pricol did not immediately respond to Reuters' request for
comment.
    Last week, Pricol reported a more than 54% jump in December-quarter profit
to 267.6 million rupees. 
    Shares of Minda Corp were down 3.3%, while those of Pricol, which hit a
record high in the morning, fell 4.4%.
    ($1 = 82.8025 Indian rupees)
 (Reporting by Anisha Ajith and Meenakshi Maidas in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((anisha.ajith@thomsonreuters.com;))