Warburg Pincus picks up Rs 1,663 crore stake in unit of Pricol

New Delhi: Warburgh Pincus has bought a minority stake in a unit of Coimbatore-based auto components player Pricol for Rs. 1,663 crore, as per a late evening stock exchange disclosure on Friday.

Topaz Terrace investments, an affiliate of Warburg Pincus, will acquire a significant minority stake in Pricol Autotech, an arm of the auto components maker that manufactures digital dashboards and instrument clusters for two wheeler makes such as TVS, Honda Motorcyle, Royal Enfield and Ather Energy.

ET had first reported on Thursday that Warburg Pincus was leading the race to acquire a minority stake in a unit of Pricol.


The deal will entail a stake purchase from existing shareholders of the Pricol unit including Vijay Mohan, Vikram Mohan, Vanitha Mohan, Viren Mohan, Manasa Mohan, Madhura Mohan and certain other promoter entities.

Warburg Pincus is acquiring 38% stake in the Driver Information and Connected Vehicle solution business which will be demerged into a company called Pricol Autotech, as per the disclosure

Following the proposed demerger, the Actuation, Control and Fluid Management Systems (ACFMS) business will continue to operate under Pricol Limited, while the Polymer business will continue to operate through Pricol’s wholly owned subsidiary Pricol Precision Products Private Limited. Both businesses will remain under the ownership and management of the current promoter group, the Mohan family, with no change in their shareholding.

Warbueg Pincus edged ahead of two global private equity firms in the race to clinch an agreement to acquire stake in the Pricol unit, ET had reported on Thursday.

Veda Corporate Advisors acted as financial advisers and Khaitan and Co and Ramani and Shankar acted as legal advisers to Pricol’s promoters. AZB and Partners and A&M acted as advisers to Warburg Pincus.