Warburg Pincus to buy into Pricol Autotech

Auto components company Pricol and private equity firm Warburg Pincus have jointly announced that Warburg will buy the entire promoters share in subsidiary company Pricol Autotech (with the promoters’ 38.51 per cent stake valued at ₹1,663.07 crore subject to the terms of a Share Purchase Agreement).

Pricol Autotech is now planned for a listing on the stock exchanges, at which point Warburg will launch a mandatory open offer to buy more shares from public shareholders of the demerged entity.

Pricol shares closed at ₹747.60, up 1.8 per cent on the BSE, on the day of the announcement.

Pricol Autotech was formed as early as February 2026 as a fully owned subsidiary of the Coimbatore-based company. By June Pricol’s board approved a demerger of the DICVS (Driver Information & Connected Vehicle Solutions) business “to meet the fast changing needs and technologies related to this business and its dynamic market realities the company”. The process also identified the subsidiary’s shareholding pattern.

Focussing on smart mobility and electronic solutions for vehicles, Pricol DICVS products (to be under Pricol Autotech) include instrument clusters, infotainment systems, e-cockpit solutions, connectivity and telematics solutions, battery management systems, and sensors. These products serve various vehicle segments, including two- and three-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles and tractors.

The turnover of the DICVS business for the financial year ending 31 March 2026 stood at ₹2,424.63 crore, representing 61.17 per cent of the total consolidated turnover of the company.

“We are proud of what our people have built and confident that we are placing Pricol Autotech in capable hands for its next chapter of growth. We will continue to focus on growing the businesses of Pricol to achieve greater success,” said Vikram Mohan, chairman and managing director.

Anish Saraf, managing director at Warburg Pincus, said: “They (Vikram Mohan and Pricol promotors) and the management team have built an exceptional business with deep relationships, strong engineering and product development capabilities, and a respected position in India’s automotive industry.”

Warburg’s purchase is through Topaz Terrace Investments B.V. (an affiliate entity), a company incorporated under the laws of The Netherlands, and will after completion of the open offer acquire control over Pricol Autotech.

Veda Corporate Advisors acted as financial advisors, and Khaitan & Co and Ramani & Shankar Advocates acted as legal advisors to the promoters. While AZB & Partners acted as legal advisor and Alvarez & Marsal India acted as financial and operations advisors to Warburg Pincus.