Pricol rises 6% on plans to acquire TVS Group firm's injection moulding biz

Pricol shares gained 5.9 per cent in Tuesday's trade on BSE and logged an intraday high at Rs 524.3 per share. The buying in the stock came after the company proposed the acquisition of Sundaram Auto Components' injection moulding business through its arm Pricol Precision Products.

 

Around 10:08 AM, Pricol share price was up 1.7 per cent at Rs 503.25 per share. In comparison, the BSE Sensex was up 0.28 per cent at 80,473.57. The market capitalisation of the company stood at Rs 6,133.69 crore. The 52-week high of the stock stood at Rs 542.05 per share and 52-week low of the stock stood at Rs 329.1 per share.

 

 

"Pricol Limited marked a pivotal moment in its journey today with the proposed acquisition of Sundaram Auto Components Ltd (SACL)’s Injection Moulding business through Pricol Precision Products Private Limited (a wholly owned subsidiary of Pricol Limited)," the filing read. 

 

With this acquisition, as per the filing, Pricol will see a consolidated topline addition of around Rs 730 crore combined with SACL’s financial parameters that are value accretive to Pricol. 

 

The debt-free acquisition is being made through an all cash deal for an amount of Rs 215.3 crore.

 

This acquisition presents Pricol with an opportunity to scale the injection moulding business into an independent business vertical and leverage SACL’s strength combined with Pricol’s capabilities, thereby growing in this vertical.

 

SACL, part of the TVS Motor Company, established in 1992, is a well-recognised player in the automotive component industry. Renowned for its expertise in innovative polymer solutions and cutting-edge injection moulding capabilities, SACL’s six state-of-the-art manufacturing facilities across India embody operational excellence and sustainable practices. Over the years, the company has built a strong customer base, supported by robust talent and a well-established manufacturing ecosystem.

 

Pricol is an automotive technology and precision-engineered products and solutions company, headquartered in Coimbatore, India. Commencing operations in the year 1975. The company is recognised as a preferred partner to many leading automotive Original Equipment Manufacturers (OEMs) across the world. 

 

The company's operations are classified into two verticals, Driver Information and Connected Vehicle Solution (DICVS) and Actuation, Control, and Fluid Management System (ACFMS)

 

In the past one year, Pricol shares have gained 45.2 per cent against Sensex's rise of 16.5 per cent.