Pricol Limited announced the approval of a scheme of arrangement for the demerger of its Driver Information & Connected Vehicle Solutions (DICVS) business into Pricol Autotech Limited. Concurrently, the company’s promoters will sell their entire 38.51% stake in Pricol Autotech to Warburg Pincus for up to INR 1,663.07 crore. Pricol Autotech will become an independent listed entity focused on automotive electronics.
Pricol Limited Announces Strategic Demerger and Stake Sale
Pricol Limited has announced a significant corporate restructuring involving the demerger of its Driver Information & Connected Vehicle Solutions (DICVS) business and a strategic stake sale in the resulting entity, Pricol Autotech Limited. The approvals were granted by the Board of Directors on 13 November 2026, following earlier approvals on 27 June 2026.
Demerger of DICVS Business
The company’s Board has approved the execution of a Share Purchase Agreement concerning the proposed sale of an aggregate of 4,69,34,833 equity shares of Pricol Autotech, representing 38.51% of its paid-up equity share capital on a fully diluted basis. This transaction follows the previously approved Scheme of Demerger, where Pricol Autotech will become the entity housing the DICVS business.
Sale to Warburg Pincus
The sellers in this transaction are the promoter and promoter group of Pricol Limited, including entities like Pricol Holdings Private Limited and individuals like Mr. Vijay Mohan. The buyer is Topaz Terrace Investments B.V., an affiliate of Warburg Pincus LLC, a global growth investor. The aggregate consideration payable for the sale of the entire stake in Pricol Autotech is up to approximately INR 1,663.07 crore.
Pricol Autotech, post-demerger, is set to become an independent listed company. It will focus on the DICVS business, which includes driver information systems, automotive electronics, instrument clusters, telematics, sensors, and e-cockpit solutions. This business contributed approximately INR 2,400 crore in revenue in FY26, representing about 60% of Pricol’s consolidated revenue.
Transaction Rationale and Future Outlook
The demerger aims to give Pricol Autotech the focus and independence to realize its full potential. Warburg Pincus’s investment is expected to support Pricol Autotech’s growth through technology and talent, expansion of capabilities, and strategic acquisitions. Following the demerger and listing, Warburg Pincus will also launch a mandatory open offer to public shareholders.
Pricol Limited will continue to operate its Actuation, Control & Fluid Management Systems (ACFMS) and Precision Products (P3L) businesses. The transaction is subject to customary conditions precedent, including regulatory approvals.
Source: BSE
