Minda Corp, on Friday acquired 15.7% stake in Pricol for Rs 400 cr via open market. As reported earlier by ET NOW, auto components manufacturer Minda Corp was looking to acquire up to 15.7% stake in Pricol via reverse book building process.
Shares of Minda Corp and Pricol opened gap up on Friday morning and were trading below Thursday’s close at the time of this report. Minda Corp shares were trading at 204.90 apiece at about 2 pm, while those of Pricol were trading at Rs 198.60 apiece.
It was learnt that the order translated to almost 1.92 crore shares (1,91,40,342 Equity Shares) at a purchase price of Rs 208.9820 per share. The total purchase offer was pegged at Rs 400 crore. “This is merely a financial investment without providing the company any special rights in Pricol other than the rights as a shareholder of Pricol Limited,” Minda Corp said in an exchange filing.
Speaking exclusively to ET NOW, Vikram Mohan, MD, Pricol said that the move from Minda was a ‘surprise’. “We are evaluating options to fire fight. We have no business association with Minda, (and the reports have) come as a bolt from the blue. We will take appropriate counter measures as needed to stop the hostile takeover… Promoters are a 1000% committed to the business given robust growth prospects. Market share has been increasing with healthy orderbook,” he said.
