Pricol Ltd, the Coimbatore-based automotive technology and precision engineering products and solutions company, on Monday said that its Board of Directors has approved a scheme to demerge its driver information & connected vehicle solutions (DICVS) business separately into Pricol Autotech Ltd.
Post the demerger, Pricol Ltd will continue to focus on its actuation, control & fluid management systems and precision products businesses.
Pricol’s shareholders will receive one fully paid-up equity share of Pricol Autotech for every one fully paid-up equity share held in Pricol (1:1 share entitlement ratio), resulting in the shareholding of Pricol Autotech Ltd mirroring Pricol’s shareholding.
The resulting company is proposed to be listed on both NSE and BSE, the announcement said. The proposed scheme is aimed to improve efficiency by enabling faster decision-making, while allowing each entity to align its processes, systems and governance frameworks.
Vikram Mohan, Chairman & Managing Director, said: “We believe this is the right time for each business to operate independently with dedicated leadership, sharper strategic focus and greater operational agility. This new structure will enable both companies to pursue focused growth strategies, accelerate innovation and respond more effectively to evolving market opportunities. We are confident that the proposed demerger will strengthen our competitive position and create sustainable long-term value for all our stakeholders.”