Pricol Objects Rival Minda’s Plan To Boost Stake In Company

Auto components major Pricol Ltd. said it filed a preliminary objection against rival Minda Corporation Ltd.’s application to the antitrust regulator to boost its stake in the company.

Minda, also an automotive components maker, has applied to the Competition Commission of India (CCI) to acquire up to a 24.5% stake in the Coimbatore-based company, Pricol said in a stock exchange announcement.

The company reserves the right to challenge in detail on merits at the appropriate stage, it added.

Minda held a 15.7% stake in Pricol at the end of March 2023, the exchange data showed.

In February, Pricol Managing Director Vikram Mohan said the company and its promoters are not looking to raise funds via stake sale following media reports that Minda intends to acquire a 15.7% stake in Pricol.

“The promoters have absolutely no intent of undertaking any secondary sale of promoter stake nor does the company have any intent to raising equity capital of any form,” Mohan said.

The company has strong financial fundamentals and healthy cash profits that will meet the needs of capital for its future growth, he added.

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