Noida-based auto components maker Minda Corp has acquired 15.7 percent stake in Coimbatore-based Pricol Ltd for ₹400 crore, the company said on Friday, adding that it is a financial investment.

There were media reports earlier on Thursday that Minda Corp was looking to buy a stake in Pricol through a reverse book-building process.

Pricol clarified to the exchanges on Friday that its promoters are “fully committed to the company and that they have absolutely no intent in undertaking any secondary sale of promoter’s stake.” Early in the morning, its managing director Vikram Mohan said the company’s performance had been turned around in the last few years making it net debt-free “and have set it on a firm growth path..... we continue to invest significantly in both product and process technology to keep us abreast of the competition.”

He said that the company has no intent to raise 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.”

Within an hour of the clarification, however, Minda Corp disclosed its purchase of Pricol’s shares at an average price of ₹208.98 each, through open market purchases.

Minda Corp said, “This is merely a financial investment without providing the company any special rights in Pricol Ltd other than the rights as a shareholder...”

Shares of both companies reacted to the news and displayed volatile movements. Pricol opened with a gap, ₹6.70 higher than the previous close of ₹208.30 on the NSE. It climbed to a high of ₹219 before retreating to trade 4.4 percent lower at ₹198.95 just after midday.

Minda Corp’s shares also opened 3.70 percent higher but quickly lost ground to trade 3.1 per cent lower at ₹207.15 on the NSE.

Pricol, a precision engineering company in the automotive segment, reported a turnover of ₹1553.5 crore in 2021-22, up from the ₹1420.9 crore reported in the previous year.

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