Indian private equity firm Phi Advisors Pvt Ltd is acquiring around 4.7 per cent stake in automotive products maker Pricol for Rs 8.1 crore ($1.6 million).
Phi, which mostly targets automotive sector for investments, is subscribing to 4.5 million share warrants on a preferential basis through Phi Capital Solutions LLP, with each warrant convertible into one equity share within 18 months. The warrants are being issued at Rs 18 a share, 27 per cent premium to the last traded price of Pricol on the BSE on Friday.
Pricol scrip was up over 2 per cent in mid-day trades and was quoting at Rs 14.1 a share in a weak Mumbai market on Monday.
The company makes and sells various automotive components besides providing fleet management solutions, among other services.
The fund will be used for working capital and other general corporate purposes.
Pricol, led by its promoter-cum-chairman Vijay Mohan, generated revenues of Rs 862 crore for the year ended March 2011, with net profit of Rs 21.5 crore. Incidentally, its foreign collaborator Denso Corp of Japan held 12.5 per cent stake in the company as of September 30, 2011.
Vijay Mohan, who has now stepped down as the managing director of the company and passed on the baton to his 36-year-old son Vikram, will henceforth be engaged in handling customer relationship management, R&D and general administration of the firm. Vikram, who joined as a director of the firm two years ago will be responsible for business development, strategy, finance, vendor management and information systems.
Phi Advisors had earlier invested in firms like used car seller Mahindra First Choice Wheels Ltd and also TVS Finance and Services Ltd that operates as a non-banking finance company (NBFC) and provides retail financing for TVS motor vehicles and consumer goods.