New Delhi, Nov. 14 -- Private equity firm Warburg Pincus has agreed to pick up a 38.51% stake in a unit of Coimbatore-based Pricol Ltd, an automotive technology and precision components company, for Rs 1,633.07 crore (about $176 million).
The PE firm will buy the promoter Mohan family's stake in Pricol Autotech Ltd after Mumbai-listed Pricol demerges its driver information and connected vehicle solutions (DICVS) business into the unit and lists it on stock exchanges. Warburg will also make an open offer to buy a stake of up to 26% in Pricol Autotech from its public shareholders as per Indian regulations.
The proposed transaction is subject to the demerger becoming effective and obtaining requisite regulatory and other approvals, Pricol and Warburg Pincus said in a joint statement.
The DICVS business comprises driver information systems and automotive electronics, including instrument clusters, telematics, sensors and e-cockpit solutions. It serves original equipment manufacturers (OEMs) across two-wheelers, three-wheelers, four-wheelers, commercial vehicles and off-highway segments. The DICVS business reported nearly Rs 2,400 crore in revenue in FY26, representing around 60% of Pricol's consolidated revenue.
"The proposed demerger will give Pricol Autotech the focus and independence to realise its full potential. We believe Warburg Pincus, with its long and storied history both in India and globally, extensive resources, global connections and deep automotive sector expertise, is the right custodian to take the business forward into the next phase of its growth story," said Vikram Mohan, chairman and MD at Pricol Ltd.
Following the demerger, Pricol Ltd will continue to operate its actuation, control and fluid management systems, and precision products businesses.
"The automotive components sector has for long been an area of focus for Warburg Pincus in India. We see compelling opportunities in automotive electronics as vehicle technology becomes increasingly sophisticated," said Swapnil Sinha, managing director at Warburg Pincus.
The PE firm's India portfolio includes auto component maker Imperial Auto, in which it acquired a majority stake in 2022. It also bought a stake in Mumbai-listed Apollo Tyres Ltd in 2020 but has trimmed its holdings in the tyremaker since then via open market share sales in 2023, 2024 and earlier this year.
Globally, New York-headquartered Warburg has more than $110 billion in assets under management and counts more than 225 companies in its active portfolio, diversified across stages, sectors and geographies. Overall, it has invested in more than 1,100 companies across its private equity, real estate and capital solutions strategies.
Veda Corporate Advisors acted as exclusive financial advisors to Pricol promoters, while Khaitan & Co and Ramani & Shankar Advocates acted as Pricol's legal advisors. AZB & Partners represented Warburg Pincus as legal advisors and Alvarez & Marsal India Pvt Ltd acted as the investment firm's financial and operations advisors.
Published by HT Digital Content Services with permission from VC Circle.