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News: In regulatory exchange filing Minda corporation informed exchanges about board meeting to be held on 2nd June, 2023 to discuss raising of funds through issue of equity shares or any other equity based instruments / securities by way of preferential issue, qualified institutions placement or rights issue.
Views: We believe this is response to proposed additional stake acquisition in Pricol Ltd (which is currently pending with CCI) of ~9% vs existing stake of ~15.7%. At the CMP, 9% stake purchase in Pricol would warrant an capital outlay of ~₹250 crore and is prudent given leverage of 0.3x Debt: Equity on its B/S as of FY23 with gross debt at ~₹553 crore as of FY23 end and net debt at ~₹300 crore. This also implies that company is confident of buying this additional stake from market participants against the wishes of promoter group at Pricol Ltd.
Impact: Neutral