Pricol To Sell Wiping Business Division For Rs 20 Crore

Pricol Ltd. said that it will be selling its wiping business division to Auto Ignition Ltd. for Rs 20 crore.

The Coimbatore-based company added that the deal is subject to adjustments set out in the business transfer agreement, which it has “executed” on Thursday.

The decision follows the company's board on Thursday approving the divestment on a slump sale basis, according to the company's exchange filing.

The transaction does not require approval of shareholders by way of special resolution, the filing added.

Pricol further said that there will be no change in its shareholding pattern due to the deal. It expects to complete the transaction by Jan. 31, 2025, or “any other date mutually agreed between the parties”, the filing stated.

In the filing, Pricol added that the transaction involves two unrelated entities.

In fiscal 2024, the company's wiping business division had garnered Rs 66.36 crore in revenue from operations.

The New Delhi-registered Auto Ignition, which is acquiring entity, is in the business of motors and alternators for the automotive sector.

For the July-September 2024 quarter, Pricol had reported consolidated profits of Rs 45.07 crore, against Rs 33.15 crore that it had posted during the same quarter of the previous fiscal.

The consolidated total income during the quarter rose to Rs 674.95 crore, compared to Rs 581.84 crore in the corresponding quarter of the previous year.

For the six-month period ending Sept. 30, 2024, its profits stood at Rs 90.63 crore, up from Rs 65.09 crore in the same period last year. For the same period, its total income was Rs 1,297.06 crore, up from Rs 1,121.90 crore in the previous year.

Shares of Pricol on Thursday closed 2.16% higher at Rs 553.75 apiece on the BSE, compared to a 1.83% advance in the benchmark Sensex.