Key Takeaways
- • Warburg Pincus agreed to acquire the promoter family's entire 38.51% stake in Pricol Autotech Limited, the proposed demerged entity housing Pricol's automotive electronics business, making it the controlling shareholder.
- • Warburg Pincus will also make a mandatory open offer to public shareholders for up to an additional 26% stake, in line with SEBI regulations.
- • The DICVS business reported revenue of around ₹2,400 crore in FY26, roughly 60% of Pricol's consolidated revenue, making it the group's largest business.
- • The transaction is contingent on the demerger becoming effective and on approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the Competition Commission of India; financial terms were not disclosed.
Summary
Pricol is bringing in private equity firm Warburg Pincus as controlling shareholder of its automotive electronics business. Under the agreement, the US-based investor will acquire the promoter family's entire 38.51% stake in Pricol Autotech Limited, the entity that will hold the Driver Information and Connected Vehicle Solutions (DICVS) business following its demerger. The transaction will follow the demerger and listing of Pricol Autotech on the BSE and NSE. Financial details of the transaction were not disclosed.
Warburg Pincus will also make a mandatory open offer to public shareholders to acquire up to an additional 26% stake, as required under SEBI regulations. The acquisition is subject to the demerger becoming effective and to approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the Competition Commission of India, among other conditions.
Pricol's board approved a scheme of arrangement for the demerger of the DICVS business into Pricol Autotech on June 27, 2026. Under the proposed arrangement, eligible shareholders of Pricol Limited will receive one equity share of Pricol Autotech for every equity share held in the parent. The DICVS business reported revenue of around ₹2,400 crore in FY26, approximately 60% of Pricol's consolidated revenue. It serves original equipment manufacturers across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and off-highway segments, with a portfolio including instrument clusters, telematics, sensors and e-cockpit solutions.
Swapnil Sinha, managing director at Warburg Pincus, said the firm sees compelling opportunities in automotive electronics as vehicle technology grows more sophisticated, and aims to build Pricol Autotech into a leading automotive electronics platform through investment in technology and talent, expanded capabilities and customer relationships, and disciplined strategic acquisitions.
Following the demerger, Pricol Limited will retain its Actuation, Control and Fluid Management Systems (ACFMS) business, while its polymer business will continue under wholly owned subsidiary Pricol Precision Products Private Limited. Both remain under the Mohan family's ownership and management, with no change in shareholding. Chairman and managing director Vikram Mohan said the demerger would give the automotive electronics business the "focus and independence to realise its full potential."
Warburg Pincus will also make a mandatory open offer to public shareholders to acquire up to an additional 26% stake, as required under SEBI regulations. The acquisition is subject to the demerger becoming effective and to approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the Competition Commission of India, among other conditions.
Pricol's board approved a scheme of arrangement for the demerger of the DICVS business into Pricol Autotech on June 27, 2026. Under the proposed arrangement, eligible shareholders of Pricol Limited will receive one equity share of Pricol Autotech for every equity share held in the parent. The DICVS business reported revenue of around ₹2,400 crore in FY26, approximately 60% of Pricol's consolidated revenue. It serves original equipment manufacturers across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and off-highway segments, with a portfolio including instrument clusters, telematics, sensors and e-cockpit solutions.
Swapnil Sinha, managing director at Warburg Pincus, said the firm sees compelling opportunities in automotive electronics as vehicle technology grows more sophisticated, and aims to build Pricol Autotech into a leading automotive electronics platform through investment in technology and talent, expanded capabilities and customer relationships, and disciplined strategic acquisitions.
Following the demerger, Pricol Limited will retain its Actuation, Control and Fluid Management Systems (ACFMS) business, while its polymer business will continue under wholly owned subsidiary Pricol Precision Products Private Limited. Both remain under the Mohan family's ownership and management, with no change in shareholding. Chairman and managing director Vikram Mohan said the demerger would give the automotive electronics business the "focus and independence to realise its full potential."
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