Pricol MD Says Promoter Family, Institutions Not To Sell Shares As Minda Corp Eyes Stake In The Firm

According to news reports, Minda Corp is looking to invest ₹400 crore in Pricol to acquire a stake. The trade expected to be executed on Friday.

Pricol is the largest player in the two-wheeler instrument cluster business, with Minda Corp following close behind. If Minda is able to secure a stake in Pricol, it will help the former consolidate its market share.

“I've had the chance to speak to our institutional investors, owning 16% stake in the company, over last night and in the morning. I have a firm commitment from FIIs that they stand supportive of the current promoter group," Mohan told Mint, adding that reports of Minda looking to acquire a 16% stake in Pricol came to his attention last night, but he was not aware of Minda's strategy.

Shares of Pricol were down nearly 5% on the BSE as of noon, with a market cap of ₹24.14 billion.

Mohan expressed confidence in Pricol's growth prospects, saying that the company was on firm financial footing, generating robust cash flows, and has a committed management team, loyal customers, and a strong order book. He also clarified that shares were not pledged, and that there was no problem on the liquidity front. Mohan added that the next generation of his family is also set to join the business.

According to Mohan, Minda Corp had reached out a few months ago, asking if Pricol would be interested in selling. However, Mohan had said that the had no intention of selling his stake in the company at any point.

He also said that he had spoken to a few of their advisors and has counter-measures in place in case of a hostile acquisition attempt in which Minda picks up shares from the open market.

"I'd like to hold my cards close to my chest", Mohan said.

In any case, he reiterated that he would have control of the company and continue to run it.