Pricol Limited — Important, 02-12-2024: General Updates

The Board has approved the acquisition of the injection moulded plastic component solutions division from Sundaram Auto Components Limited for INR 215.3 Cr, expected to complete by January 31, 2025. This acquisition, with a revenue of INR 727.33 Cr for FY24, aligns with Pricol’s core operations in the auto component sector, enhancing capabilities and market reach.

Additionally, the Board has sanctioned a cash investment of up to INR 120 Cr in its wholly owned subsidiary, Pricol Precision Products Private Limited, which has yet to commence operations. Pricol has also approved a strategic acquisition of up to 26% in PQSI Digital Private Limited, focusing on Industry 4.0 products, with a total investment of up to INR 10 Cr anticipated over three years to bolster its digital transformation efforts.

Furthermore, a corporate guarantee not exceeding INR 250 Cr will be provided for loans taken by Pricol Precision Products, reflecting support for the subsidiary's financial health without immediate impact on Pricol's consolidated results. Stakeholders should view these developments as strategic growth opportunities.