Pricol Limited’s promoter group has agreed to sell their entire 38.51% stake in Pricol Autotech Limited to Warburg Pincus. This sale follows an approved demerger of Pricol’s Driver Information and Connected Vehicle Solutions (DICVS) business into Pricol Autotech. The transaction is subject to regulatory approvals and aims to support Pricol Autotech’s growth as an independent entity.
Key Agreement for Pricol Autotech
Pricol Limited has announced a significant development concerning its promoter group’s shareholding in its subsidiary, Pricol Autotech Limited. The Board of Directors of Pricol Limited, at its meeting held on 13 November 2026, approved the execution of a Share Purchase Agreement. This agreement outlines the sale of an aggregate of 4,69,34,833 equity shares, representing 38.51% of the paid-up equity share capital of Pricol Autotech, on a fully diluted basis.
The sellers in this transaction include key members of the promoter and promoter group: Mr. Vijay Mohan, Mr. Vikram Mohan, and Mrs. Vanitha Mohan (Promoters), along with Mr. Viren Mohan, Ms. Manasa Mohan, Ms. Madhura Mohan, Pricol Holdings Private Limited, Pricol Engineering Industries Private Limited, Shrimay Enterprises Private Limited, and Pricol Logistics Private Limited.
The buyer is Topaz Terrace Investments B.V., an affiliate entity of Warburg Pincus LLC, a company incorporated in The Netherlands. Notably, the Acquirer is not related to the Company. This proposed transaction is a crucial step following the previously announced demerger of Pricol’s Driver Information & Connected Vehicle Solutions (DICVS) business into Pricol Autotech.
Demerger and Strategic Intent
As previously intimated on 27 June 2026, the Boards of Directors of Pricol Limited and Pricol Autotech had approved a scheme of arrangement for the demerger of the DICVS Business into Pricol Autotech. In consideration for the demerger, 1 fully paid-up equity share of Pricol Autotech of face value INR 1 each is to be issued for every 1 fully paid-up equity share of Pricol Limited held by its shareholders.
The DICVS business, which will be housed in Pricol Autotech, reported approximately INR 2,400 crore in revenue in FY26, accounting for around 60% of Pricol’s consolidated revenue. Pricol Autotech is expected to become an independent, listed company, focusing on driver information systems and automotive electronics.
Transaction Completion and Impact
The Share Purchase Agreement details the terms for the Sellers to sell and the Acquirer to acquire these shares. The aggregate consideration payable for the sale of the entire stake of Pricol Autotech is up to INR 1,663.07 Crores. The proposed acquisition is subject to the demerger becoming effective, listing of Pricol Autotech’s equity shares on the Stock Exchanges, the expiry of the mandatory open offer period by the Acquirer, and other conditions precedent, including approval from the Competition Commission of India.
The transaction is expected to build on Pricol’s legacy and accelerate Pricol Autotech’s growth, expanding its capabilities in instrument clusters, connected vehicle and e-cockpit solutions. Following the transaction, Warburg Pincus will become Pricol Autotech’s largest shareholder. The Acquirer will acquire control over Pricol Autotech, and the Sellers will seek reclassification from the promoter and promoter group category of Pricol Autotech.
Business Continuity
Following the demerger, Pricol Limited will continue to operate its Actuation, Control and Fluid Management Systems (ACFMS) business and the Polymer business through its subsidiary, Pricol Precision Products Private Limited. Both these businesses will remain under the ownership and management of the Mohan family, with no change in their shareholding.
Source: BSE
