The Madras High Court on Wednesday (July 12) vacated the interim injunction in relation to auto components maker Minda Corporation Ltd's application to the Competition Commission of India (CCI) for acquiring a 24.5 percent stake in Pricol.
In May this year, Pricol moved the Madras High Court challenging the validity of the application of rival Minda Corporation to the CCI to acquire a 24.5 percent stake in it.
Minda Corporation had decided to approach the CCI to increase its stake in Pricol to up to 24.5 percent, following the acquisition of a 15.7 percent stake, by purchasing over 1.91 crore shares of Pricol from the open market on February 17, 2023.
After buying the stake in February, Minda maintained that it was a mere financial investment.
On the other hand, the Pricol promoters — led by its Chairman Vanitha Mohan and Managing Director Vikram Mohan, who hold 36.53 percent 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.
Minda Corp has a presence in the global automotive industry and is a manufacturer of automotive components for original equipment manufacturers (OEMs).
The company caters to nearly every automotive segment like passenger and commercial vehicles, off-road vehicles, vehicle aftermarket, and the electrical vehicles space. Bajaj Auto, Hero, Royal Enfield, Ashok Leyland, BMW, Ford, Honeywell, and others feature among its key clients.
Shares of Minda Corp Ltd ended at Rs 299.20, down by Rs 2.75, or 0.91 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
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