Warburg Pincus to acquire 38.51% stake in Pricol's demerged auto electronics business

Pricol is set to bring in private equity investor Warburg Pincus as a controlling shareholder in its automotive electronics business, with the US-based investment firm agreeing to acquire the promoter family's entire 38.51% stake in the proposed demerged entity, Pricol Autotech Limited.

The transaction, which will follow the demerger and listing of Pricol Autotech on the BSE and NSE, marks a significant ownership transition for the Coimbatore-based automotive components maker. Warburg Pincus will also make a mandatory open offer to public shareholders to acquire up to an additional 26% stake, in accordance with SEBI regulations.

The proposed acquisition is subject to the demerger becoming effective and receiving regulatory and other requisite approvals. Financial details of the transaction were not disclosed.

Pricol's Driver Information and Connected Vehicle Solutions (DICVS) business, which will be housed under Pricol Autotech, reported revenue of around ₹2,400 crore in FY26. This accounted for approximately 60% of Pricol's consolidated revenue, making it the largest business within the group.

A separate platform for automotive electronics

Pricol's board had approved a scheme of arrangement for the demerger of its DICVS business into Pricol Autotech on June 27, 2026. Under the proposed arrangement, eligible shareholders of Pricol Limited will receive one equity share of Pricol Autotech for every equity share held in the parent company. The demerged entity is expected to be independently listed on the NSE and BSE.

The business caters to original equipment manufacturers (OEMs) across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and off-highway segments. Its portfolio includes instrument clusters, telematics, sensors and e-cockpit solutions.

The investment is aimed at expanding Pricol Autotech's capabilities in automotive electronics, with Warburg Pincus looking to build a broader platform through investments in technology, talent, customer relationships and strategic acquisitions.

"We see compelling opportunities in automotive electronics as vehicle technology becomes increasingly sophisticated. Our aim is to support Pricol Autotech's evolution into a leading automotive electronics platform through investment in technology and talent, expansion of capabilities and customer relationships, and disciplined strategic acquisitions," said Swapnil Sinha, managing director at Warburg Pincus.

Following the demerger, Pricol Limited will retain its Actuation, Control and Fluid Management Systems (ACFMS) business. Its polymer business will continue to operate through wholly owned subsidiary Pricol Precision Products Private Limited. Both businesses will remain under the ownership and management of the Mohan family, with no change in their shareholding.

Pricol chairman and managing director Vikram Mohan said the demerger would give the automotive electronics business the "focus and independence to realise its full potential", adding that Warburg Pincus was well placed to take it into its next phase of growth.

The transaction is subject to approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the Competition Commission of India, among other applicable conditions.