Minda Corporation gains CCI approval for up to 8.79% stake in Pricol, raising total holding to 24.5%
Upstox
1 min read • Updated: February 21, 2024, 1:27 PM
Summary
Auto component players Minda Corporation and Pricol made headlines after the Competition Commission of India (CCI) approved Minda's acquisition of an additional 8.79% stake in Pricol.
The CCI has approved Minda's purchase of up to 8.79% of Pricol's equity share capital. This comes after Minda acquired a 15.7% stake in Pricol through an open market transaction in February 2023.
Pricol had initially challenged Minda's bid for a 24.5% stake, but the CCI approval paved the way for Minda's total shareholding to reach 24.5%.
Minda Corporation manufactures auto components for OEMs and Tier-1 suppliers across various segments in India. Similarly, Pricol focuses on producing automobile components for OEMs, Tier-1, and replacement markets, both in domestic and global markets.
On the earnings front, Minda Corporation posted 9.1% and 2.7% YoY growth in revenue and net profit in Q3FY23. Meanwhile, Pricol recorded 20% and 25% YoY growth in revenue and net profit for the same quarter, respectively.
As of 13:13 PM, Minda Corporation's shares were down 0.30%, while Pricol's shares were trading 1.3% lower.