Chennai: The promoters of Pricol Ltd, a leading manufacturer of vehicle dashboards and driver information systems, have agreed to sell their entire 38.51% stake in Pricol Autotech Ltd to global private equity firm Warburg Pincus for up to Rs 1,663.07 crore. Pricol Autotech will house the auto parts makers’ driver information and connected vehicle solutions (DICVS) business following a proposed demerger.The DICVS business, which makes instrument clusters, telematics, sensors and e-cockpit solutions for vehicles across segments, reported revenue of about Rs 2,400 crore in FY26, accounting for roughly 60% of Pricol’s consolidated revenue.Pricol’s board approved the share purchase agreement on Friday. The stake will be acquired by Topaz Terrace Investments BV, a Netherlands-based affiliate of Warburg Pincus, from members of the Mohan family and their group companies, according to a stock exchange filing.The transaction is subject to the demerger becoming effective and receipt of regulatory and other approvals. Warburg Pincus will also make a mandatory open offer to acquire up to an additional 26% stake from public shareholders in accordance with SEBI regulations.Pricol’s board approved the demerger scheme on June 27, 2026. Under the scheme, eligible shareholders of Pricol will receive one share of Pricol Autotech for every share held in Pricol. The demerged entity is proposed to be listed on the NSE and BSE.Vikram Mohan, CMD of Pricol, said the demerger would give Pricol Autotech the focus and independence to realise its potential. Warburg Pincus, with its global network, resources and automotive sector expertise, was well placed to take the business into its next phase of growth, he said.Anish Saraf, MD at Warburg Pincus, said Pricol had built strong relationships with original equipment manufacturers (OEMs) and developed robust engineering capabilities. The firm would work with the company’s management and employees to support its long-term ambitions and expand its presence in India and overseas, he said.Following the demerger, Pricol Ltd will retain its actuation, control and fluid management systems business, while its polymer business will continue under its wholly owned subsidiary, Pricol Precision Products Pvt Ltd. Both businesses will remain with the existing promoter group, the Mohan family, with no change in ownership.
