At 09:23 AM; Pricol had erased its intra-day gain, and was up 0.46 per cent at Rs 209.25, after the company’s promoter denied the stake sale plan. Minda Corporation was up 2 per cent at Rs 217.65 on the BSE. In comparison, the S&P BSE Sensex was down 0.50 per cent at 61,021.
The promoters have absolutely no intent of undertaking any secondary sale of promoter stake nor does the company have any intent to raising equity capital of any form as the company has strong financial fundamentals and healthy cash profits that will meet the needs of capital for its future growth, Pricol said on clarification of media news.
The promoters and the management stand committed to its stakeholders and are bullish about the growth prospects of the organisation combined with a firm financial footing, the company said.
“As Managing Director and representative of the Promoter Group of Pricol Limited, I would like to reiterate that the Promoter group stands absolutely committed to the company and its future prospects,” Vikram Mohan, Managing Director of Pricol said.
“We have turned around the company in the last few years by making it net debt free and have set it on a firm growth path, and proved customer confidence with a healthy order book, while we continue to invest significantly in both product and process technology to keep us ahead of competition”, Vikram Mohan said.
ICICI Securities believe this investment will come in the form of fresh equity infusion in Pricol (market cap: Rs 2,500 crore) as promoter stake is already low at ~36.5 per cent. Overall, this will aid Pricol towards funding its capex for its future growth requirement amid ambitious targets of Rs 4,000 crore topline by FY26E vs. ~Rs 2000 crore expected in FY23E.
From Minda Corporation's standpoint this acquisition seems less rewarding in the near term with Pricol expected to earn ~Rs 120 crore of PAT in FY24E resulting in ~5 per cent return on investment as profit from associates. Further, to fund this, Minda Corp has ~Rs 145 crore of unutilised proceeds from QIP issued in FY19, the brokerage firm said in a note, stating they await official communication on the same to gauge further financial implication for both entities.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app