The Madras High Court on Wednesday vacated the interim injunction in relation to the adjudication of auto parts maker Minda Corporation Ltd application by the Competition Commission of India for buying up to 24.5 per cent stake in Coimbatore-based Pricol, a manufacturer of auto parts and precision-engineered products.
The development paves the way for CCI to take up Minda’s application to increase its stake in Pricol.
“We hereby inform you that the High Court of Judicature at Madras has pronounced an order on July 11, 2023, vacating the interim injunction that was previously granted by the said Court by its interim order dated May 24, 2023, in relation to adjudication of Minda’s application by CCI, Minda said a communique to stock exchanges.
In May this year, Pricol moved the Madras High Court challenging the validity of Minda‘s application to buy up to 24.5 per cent stake in the company.
Minda decided to approach the CCI to go ahead with its plan of increasing its stake in Pricol to up to 24.5 percent, following the acquisition of a 15.7 percent stake, by purchasing over 1.91 crore shares of Pricol from the open market on February 17, 2023. Minda described the deal as “a mere financial investment.”
Meanwhile, Pricol indicated that the promoters, who hold 36.53 per cent of the company, had no intention to sell any stake.
“The promoters have absolutely no intention of undertaking any secondary sale of promoter stake nor does the company have any intent to raising equity capital of any form as the company has strong financial fundamentals and healthy cash profits that will meet the needs of capital for its future growth,” Vikram Mohan, Managing Director of the company said then.
On Wednesday, shares of Minda Corp Ltd ended at ₹299.20, down 0.91 per cent, while Pricol’s shares fell 1.89 per cent to end at ₹215.50.