Pricol moves Madras HC challenging validity of Minda’s application to CCI

Auto components maker Pricol Ltd said on Thursday that it had moved the Madras High Court to challenge the validity of competitor Minda Corporation’s application to the Competition Commission of India to acquire a 24.5 percent stake in it.

Minda Corporation earlier this month decided to approach CCI to increase its stake in Pricol up to 24.5 percent, after acquiring 15.7 percent stake by buying over 1.91 crore shares of the latter from the open market on February 17, 2023.

In a regulatory filing, Bricol said it has filed an injunctive petition with the Madras High Court in relation to the application of Minda Corporation Ltd (Minda) to CCI.

It added that the petitions challenged the validity of Minda’s application to CCI, to make the equity investment in Pricol Ltd’s ownership amount to 24.5 per cent of the total equity shares.

The Supreme Court Chamber accepted on 24 May 2023 to “seek an injunction and be restrained by interim order, receive the filing and/or adjudication of Minda Corporation Ltd’s application to CCI, and issue notice to counterparties,” the company said.

Federation of India, CCI and Minda are named as opposing parties.

After purchasing the stake in February, Minda maintained that it was only a financial investment.

On the other hand, Pricol’s family of promoters, led by its Chairman Vanitha Mohan and Managing Director Vikram Mohan, who own 36.53 percent in the company, stated that they have no intention of selling their properties.

Precool and Minda compete in the two-wheeler kit business.