Pricol approves divestment of wiping business division to Auto Ignition, shares trade lower on BSE

Mumbai, January 3 - Pricol Limited, a leading auto components manufacturer, announced the approval of the divestment of its wiping business division to Auto Ignition at their board meeting held on January 2.

The company stated that the consideration for the proposed transaction is Rs 20 crores, subject to adjustments set out in the business transfer agreement. The revenue from operations of the wiping business division stood at Rs 66.36 crore in FY24.

Pricol is involved in the manufacturing of auto components including wiper motor and washer kits as part of its divisions, while Auto Ignition specializes in motors and alternators for the automotive sector.

This decision marks another significant move by Pricol to restructure its business operations. The company had recently announced the acquisition of Sundaram Auto Components' Injection Moulding business through an all-cash deal worth Rs 215.3 crore.

The share price of Pricol was trading lower in the early trade on January 3, hovering at Rs 545.10, down Rs 8.65 or 1.56 percent, on the BSE.

The stock has shown fluctuating performance over the past few months, having touched a 52-week high of Rs 598.85 and a 52-week low of Rs 330.50 in December and March respectively. It is currently trading 8.98 percent below its 52-week high and 64.93 percent above its 52-week low.

The latest move by Pricol indicates the company's focus on strategic restructuring and expansion in the auto component sector.