Minda, Pricol take tangible steps in takeover battleMINDACORP - 332 Change: 6.35 (1.95 %)
News: In a regulatory exchange filing, Minda Corporation has informed exchanges about board approval for equity fund raise amounting to ~ Rs 600 crore through public and/or private offerings including preferential issue, qualified institutions placement. Further in separate exchange filing Pricol informed about its promoter group buying ~1.4% stake in the company from open market to increase its holding from 36.5% currently to ~37.9%
Views: This fund raise approval at Minda Corporation is in response to earlier intimation of buying additional ~9% stake in Pricol Ltd (current stake held at 15.7%). At the closing CMP of ~Rs 237 per share, consequent outlay for it is pegged at ~Rs 255 crore. With higher-than-expected approval of fund raise we expect the company to execute more tangible steps in its pursuit to acquire Pricol Ltd (voluntary open offer could be one of them). On the other hand, this open market stake purchase by promoter group of Pricol is its first tangible step for stake increase thereby depicting confidence in the company.