Indian automotive components maker Minda Corporation Ltd on Friday said it acquired a 15.70 percent stake in rival Pricol Ltd for 4 billion rupees ($48.3 million).
The open market transaction took place at an average price of 208.9820 rupees 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 Feb. 16, had said Minda is looking to acquire up to 15.7 percent 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 percent jump in December-quarter profit to 267.6 million rupees.
Shares of Minda Corp were down 3.3 percent, while those of Pricol, which hit a record high in the morning, fell 4.4 percent.
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