Shares of Pricol Ltd surged more than 5% on 3 December after the company announced their plans to acquire Sundaram Auto Components’ injection moulding business through its subsidiary Pricol Precision Products.

In its regulatory filing, the company said, “Pricol Limited marked a pivotal moment in its journey today with the proposed acquisition of Sundaram Auto Components Ltd (SACL) ‘s Injection Moulding business through Pricol Precision Products Private Limited (a wholly owned subsidiary of Pricol Limited).”

According to the filing, this transaction will give Pricol a consolidated topline boost of about Rs 730 crore, along with SACL’s value-accretive financial metrics. 

The purchase, which is debt-free, is being made for a total consideration of Rs 215.3 crore in pure cash.

Through this acquisition, Pricol will have the chance to expand its injection moulding company into a separate business vertical and take advantage of SACL’s strength and Pricol’s skills to grow in this market.

Founded in 1992 as a division of TVS Motor Company, SACL is a well-known participant in the automotive component market. SACL’s six state-of-the-art production facilities around India are renowned for their proficiency in cutting-edge injection moulding techniques and creative polymer solutions. They are also examples of sustainable business practices and operational excellence. Strong talent and a reputable manufacturing ecosystem have helped the company develop a loyal client base over the years.

Pricol is a Coimbatore, India-based company that specializes in automotive technology and precision-engineered products and solutions. It started operating in 1975. Many of the world’s top vehicle Original Equipment Manufacturers (OEMs) acknowledge the company as a preferred partner. 

Actuation, Control, and Fluid Management System (ACFMS) and Driver Information and Connected Vehicle Solution (DICVS) are the two verticals into which the company’s operations are divided.
 
At 11:43 am, the shares of Pricol were trading 1.91% higher at Rs 504.50 on NSE.

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