Minda Corp - Acquisition Of A 15.7% Stake In Pricol, Purely A Financial Investment: Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Axis Securities Report.On Feb 17, 2023, Minda Corporation Ltd. acquired 19 million equity shares of Pricol Ltd., representing 15.7% of its total issued and paid-up equity share capital. Rationale of the Acquisition: The management stated that this is purely a financial investment without providing Minda Corp any special rights in Pricol other than the rights as a shareholder of Pricol. This is an open-market transaction at an average price of Rs 208/share aggregating to Rs 400 crore. After evaluating various opportunities and as per the mandate of the board, the company deployed its surplus investable cash for this acquisition.Debt/Equity: Post this open market transaction, Minda’s D/E ratio is 0.3 and debt/Ebitda of 1:1. It has long-term debt of Rs 150 crore and net short-term debt of Rs 260 crore. The company reiterated that it has a strong balance sheet with enough cash flow generation capacity to support organic growth and meet its capex requirement. Moreover, the company continues to be on the lookout for any further inorganic growth opportunities.  Future Synergies: Minda Corp informed that the decision to invest currently is a financial investment. It currently only has a minority stake in Pricol and hence no synergies are expected from the acquisition.Click on the attachment to read the full report:.More Research Reports On Minda Corp's Stake In Pricol.Minda Corp - Acquires Stake In Pricol As Financial Investment, Strategic Intent Not Dispelled: ICICI DirectPricol - Minda Buys Stake From Open Market, Reaffirms Our Thesis Of Healthy Capabilities: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Minda Corp - Acquisition Of A 15.7% Stake In Pricol, Purely A Financial Investment: Axis Securities

It currently only has a minority stake in Pricol and hence no synergies are expected from the acquisition

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