Indian automotive components maker Minda Corporation Ltd. on Friday said it acquired a 15.70% stake in rival Pricol Ltd. for ₹4 billion ($48.3 million).
The open market transaction took place at an average price of ₹208.9820 per share, Minda Corp. said in an exchange filing.
“This is merely a financial investment without providing the company any special rights in Pricol Ltd. other than the rights as a shareholder,” Minda said.
Media reports on February 16, had said Minda is looking to acquire up to 15.7% stake in Pricol.
Ahead of Minda’s announcement on Friday, Pricol said it “has no information” on media reports of the said deal and the parent has “absolutely no intent in undertaking any secondary sale of promoter’s stake.”
“Promoter group stands absolutely committed to the company and its future prospects,” Vikram Mohan, managing director of Pricol, said in a statement, adding that the company was net debt free and promoters and the management are bullish about its growth prospects.
Minda Corp. and Pricol did not immediately respond to Reuters’ request for comment.
Last week, Pricol reported a more than 54% jump in December-quarter profit to ₹267.6 million.
