Auto components maker Pricol Ltd on Wednesday said it has filed a preliminary objection against Minda Corporation Ltd's application to the Competition Commission of India (CCI) to further increase its stake in it.
Earlier this month, Minda Corporation decided to approach the CCI to increase its stake in Pricol to up to 24.5 per cent following the acquisition of a 15.7 per cent stake by purchasing over 1.91 crore shares of the latter from the open market on February 17, 2023.
In a regulatory filing, Pricol said it has filed a preliminary objection against Minda's application to the CCI for making an investment in the equity shares of the company up to 24.5 per cent of total equity shares, "while also reserving the right to challenge in detail on merits at the appropriate stage".
After buying the stake in February, Minda maintained that it was a mere financial investment.
On the other hand, the promoter family of Pricol — led by its Chairman Vanitha Mohan and Managing Director Vikram Mohan, who hold 36.53 per cent of the company — had stated that they had no intention to sell their holdings.
Pricol and Minda compete in the two-wheeler instrument cluster business.
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