Key Takeaways
- • Warburg Pincus will acquire the promoter group's entire 38.51% stake in Pricol Autotech for a consideration of up to ₹1,663.07 crore, according to CNBC TV18, with the deal announced on Friday, November 13.
- • The transaction is tied to the proposed demerger of Pricol Ltd's Driver Information and Connected Vehicle Solutions (DICVS) business, which generated about ₹2,400 crore in FY26 revenue, roughly 60% of Pricol's consolidated revenue.
- • Following the demerger and listing, Warburg Pincus will launch a mandatory open offer under SEBI takeover regulations for up to an additional 26% of Pricol Autotech's share capital, giving it control upon completion.
- • Completion remains subject to the demerger taking effect, NSE and BSE listing, the open offer period, and approvals including the Competition Commission of India (CCI), NCLT, SEBI and shareholders and creditors.
- • Pricol Ltd receives no consideration from the deal; the Mohan family retains ownership of Pricol's ACFMS and Polymer businesses.
Summary
Private equity firm Warburg Pincus will acquire the entire 38.51% stake in Pricol Autotech held by the promoter group of auto-component manufacturer Pricol Ltd, for a consideration of up to ₹1,663.07 crore, the companies announced on Friday, November 13, according to CNBC TV18. The sellers include Vijay Mohan, Vikram Mohan, Vanitha Mohan, other family members and promoter group entities, who will sell 4.69 crore equity shares to Topaz Terrace Investments B.V., an affiliate of Warburg Pincus LLC. Pricol's board approved the agreement on November 13.
The transaction is linked to the proposed demerger of Pricol Ltd's Driver Information and Connected Vehicle Solutions (DICVS) business into Pricol Autotech. Pricol's board approved the scheme of arrangement on June 27, 2026. Under the scheme, eligible Pricol Ltd shareholders are expected to receive one fully paid-up equity share of Pricol Autotech for every share held. The DICVS business, which includes instrument clusters, telematics, sensors and e-cockpit solutions, serves OEMs across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and off-highway segments, and reported revenue of approximately ₹2,400 crore in FY26, around 60% of consolidated revenue.
The acquisition will close only after the demerger becomes effective, Pricol Autotech is listed on the NSE and BSE, the open offer period expires and other conditions are met, including CCI approval. Following listing, Warburg Pincus will make a mandatory open offer under SEBI takeover regulations for up to an additional 26% of Pricol Autotech's share capital. On completion, Warburg Pincus will control the company, and the selling promoters will seek reclassification out of the promoter and promoter group category, subject to applicable laws. Pricol Ltd will not receive any proceeds, as the full consideration goes to the selling promoter group members and entities.
Pricol Ltd will retain its Actuation, Control and Fluid Management Systems (ACFMS) business, and its Polymer business through subsidiary Pricol Precision Products Private Ltd. Both remain under the Mohan family's ownership and management with no change in shareholding. Vikram Mohan, Chairman and Managing Director of Pricol Ltd, said the demerger would give Pricol Autotech "the focus and independence to realise its full potential," and described Warburg Pincus as "the right custodian" for the business. Anish Saraf, Managing Director at WarburgPincus, said the firm looks forward to partnering with Pricol Autotech's management and employees to support long-term ambitions in India and internationally.
The proposed scheme remains subject to approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the CCI, as relevant. Veda Corporate Advisors was exclusive financial advisor to the promoters, with Khaitan & Co and Ramani & Shankar Advocates as legal advisors. AZB & Partners advised Warburg Pincus on legal matters, and Alvarez & Marsal India Private Ltd served as its financial and operations advisor. Shares of Pricol Ltd closed at ₹747.60 on the BSE, up ₹13.25, or 1.80%.
The transaction is linked to the proposed demerger of Pricol Ltd's Driver Information and Connected Vehicle Solutions (DICVS) business into Pricol Autotech. Pricol's board approved the scheme of arrangement on June 27, 2026. Under the scheme, eligible Pricol Ltd shareholders are expected to receive one fully paid-up equity share of Pricol Autotech for every share held. The DICVS business, which includes instrument clusters, telematics, sensors and e-cockpit solutions, serves OEMs across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and off-highway segments, and reported revenue of approximately ₹2,400 crore in FY26, around 60% of consolidated revenue.
The acquisition will close only after the demerger becomes effective, Pricol Autotech is listed on the NSE and BSE, the open offer period expires and other conditions are met, including CCI approval. Following listing, Warburg Pincus will make a mandatory open offer under SEBI takeover regulations for up to an additional 26% of Pricol Autotech's share capital. On completion, Warburg Pincus will control the company, and the selling promoters will seek reclassification out of the promoter and promoter group category, subject to applicable laws. Pricol Ltd will not receive any proceeds, as the full consideration goes to the selling promoter group members and entities.
Pricol Ltd will retain its Actuation, Control and Fluid Management Systems (ACFMS) business, and its Polymer business through subsidiary Pricol Precision Products Private Ltd. Both remain under the Mohan family's ownership and management with no change in shareholding. Vikram Mohan, Chairman and Managing Director of Pricol Ltd, said the demerger would give Pricol Autotech "the focus and independence to realise its full potential," and described Warburg Pincus as "the right custodian" for the business. Anish Saraf, Managing Director at WarburgPincus, said the firm looks forward to partnering with Pricol Autotech's management and employees to support long-term ambitions in India and internationally.
The proposed scheme remains subject to approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the CCI, as relevant. Veda Corporate Advisors was exclusive financial advisor to the promoters, with Khaitan & Co and Ramani & Shankar Advocates as legal advisors. AZB & Partners advised Warburg Pincus on legal matters, and Alvarez & Marsal India Private Ltd served as its financial and operations advisor. Shares of Pricol Ltd closed at ₹747.60 on the BSE, up ₹13.25, or 1.80%.
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