Coimbatore-based auto component maker Pricol said it has filed an objection with the competition regulator Competition Commission of India (CCI) against Minda Corporation Ltd over the acquisition of a 24.5 percent stake in the company.

“We would like to inform that the Company has filed a preliminary objection against the Minda Corporation Limited’s (Minda) application to the Competition Commission of India (CCI) for making an investment in Equity Shares of Pricol Limited up to 24.5 percent of total Equity Shares of Pricol, while also reserving the right to challenge in detail on merits at the appropriate stage,” Pricol said in a regulatory filing on Wednesday.

The company is the second-largest manufacturer of instrument clusters and fuel level sensors for two and three-wheeler applications. Pricol is also Minda’s arch rival in the two-wheeler instrument cluster business. As per market estimates, the transaction may lead to further consolidation in the instrument clusters market, where Pricol currently has a 40-50 percent market share with Minda holding a 15 percent share. At present, Pricol is debt free and its overall revenue in FY23 stood at Rs 1,903 crore, up nearly 27 percent year-on-year. Consolidated FY23 EBITDA was nearly Rs 236 crore, up 23.4 percent year-on-year while EBITDA margin was nearly 12.4 percent. 

In February, Noida-based auto components maker Minda Corp acquired a 15.7 percent stake in Coimbatore-based Pricol for Rs 400 crore. “This is merely a financial investment without providing the company any special rights in Pricol Ltd. other than the rights as a shareholder,” Minda said in a regulatory filing.

Earlier this month, Minda Corporation had sought the CCI approval to increase their stake to 24.5 percent stake in rival Pricol.