Warburg Pincus to acquire 38.51 per cent stake in Pricol Autotech
The transaction, valued at up to Rs 1,663.07 crore, follows a proposed demerger of the driver information and connected vehicle solutions business.
The promoters of Pricol Ltd have agreed to sell their entire 38.51 per cent stake in Pricol Autotech Ltd to the global private equity firm Warburg Pincus for up to Rs 1,663.07 crore, according to The Times of India.
The stake will be purchased by Topaz Terrace Investments BV, an affiliate of Warburg Pincus based in the Netherlands, from the Mohan family and their group companies.
Pricol Autotech is intended to house the driver information and connected vehicle solutions (DICVS) business after a proposed demerger. This DICVS unit, which produces sensors, telematics, instrument clusters and e-cockpit solutions, recorded revenue of approximately Rs 2,400 crore in FY26.
Pricol's board approved the share purchase agreement on Friday. The deal depends on the demerger becoming effective and receiving necessary regulatory approvals.
Warburg Pincus will also launch a mandatory open offer to buy up to an additional 26 per cent stake from public shareholders as per SEBI regulations.
Pricol CMD Vikram Mohan said the demerger would allow Pricol Autotech the independence to reach its potential. Warburg Pincus MD Anish Saraf said the firm would work with management to support long-term ambitions and expand in India and abroad.