Auto component maker Minda Corporation’s last week purchased 19million shares of Pricol, from open market for about Rs 400 crores (INR 4 billion). Although according to Minda, as stated in some of the business news daily, its first focus remains on organic growth. Minda’s strategy head Anshul Saxena on Sunday said purchase of Pricol shares is just a financial investment right now.
But, the purchase of shares from open market is ‘considered hostile’, as Vikram Mohan, Managing Director or Pricol had declined offers of buyout from Minda earlier. Vikram along with promoters hold 36.53% shares of Pricol.
Pricol and Minda are rivals in two-wheeler’s instrument cluster business, where Pricol has over 40% market share and Minda has about 15%.
