The proposed merger of Coimbatore-based auto accessories maker Xenos Automotive Ltd with Pricol Ltd has been approved by the boards of the two companies, according to a stock market disclosure on Friday.
Xenos is a privately held firm of the promoters of Pricol and the merger would result in an increase in their holding in the listed company.
Pricol scrip declined over 6 per cent in a weak Mumbai market after the news.
Shareholders of Xenos will receive 1 equity share of Re 1 each of Pricol for every 122 equity shares of Rs 10 each of Xenos.
Recently, Pricol sold off its healthcare business to Mysore-based medical device company Skanray Technologies for an undisclosed amount.
Established in 1972, Pricol designs, manufactures and sells instrument clusters, automotive sensors and power train related products. On the other hand, Xenos is into the production of a range of automotive accessories like vehicle security systems, entertainment products like head units, amplifiers, sub-woofers, convenience products such as car mobile and laptop chargers and car care products.
(Edited by Joby Puthuparampil Johnson)