Auto component maker Minda Corporation on Tuesday said its board has decided to approach the Competition Commission of India (CCI) to increase its stake in automotive technology firm Pricol to upto 24.5 per cent.
On February 17, 2023, Minda Corporation had acquired a 15.7 per cent stake in Pricol by purchasing over 1.91 crore shares of the latter from the open market.
"We would like to update that the Board of Directors in its meeting held on May 1, decided to file an application to CCI for making investment in equity shares of Pricol Ltd upto 24.5 per cent of total equity shares of Pricol, at this stage," Minda Corporation said in a regulatory filing.
After buying the stake in February, Minda had maintained that it was a mere financial investment.
On the other hand, the promoter family of Pricol, led by its Chairman Vanitha Mohan and Managing Director Vikram Mohan, who hold 36.53 per cent in the company had stated that they had no intention to sell their holdings.
Pricol and Minda compete in the two-wheeler instrument cluster business.
Shares of Minda were trading at Rs 283.95, up 0.18 per cent over its previous closing price on BSE, while shares of Pricol Ltd were trading at Rs 249.25 apiece on BSE, down 0.32 per cent.
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First Published: May 02 2023 | 3:31 PM IST