Coimbatore-based automotive components manufacturer Pricol Ltd has sold its entire 49 per cent stake in DENSO Pricol India Pvt Ltd (DPIN) to JV partner Japan's Denso Corporation, for Rs 20 crore ($3.18 million), as per a stock market disclosure.
In 2013, Denso Corporation had picked up 51 per cent stake in Pricol Components Ltd, a subsidiary of Pricol. Pricol also transferred its Denso Technology Instrument Cluster Undertaking situated at Coimbatore (Tamil Nadu) and at Manesar (Haryana) related to the four wheeler personal passenger vehicles in the process.
Later Pricol Components got renamed as DENSO Pricol India in which Denso held 51 per cent stake and remaining 49 per cent were held by the former parent company.
Post the latest divestment, DPIN has become a wholly-owned subsidiary of Denso Corporation.
Established in 1972, Pricol (earlier known as Premier Instruments & Controls Ltd) manufactures and markets automotive components like dashboard instrument, speedometer cables, oil pumps, disc brakes, sensors, oil pumps, industrial gauges, vehicle security systems.
In December, it struck a deal to acquire Mellin do Brasil, a Brazil-based auto component manufacturing company, as part of its plans to foray into the Brazilian auto component industry.
Pricol's shares last traded at Rs 32.80 each, up 3.14 per cent on BSE in a strong Mumbai market on Tuesday.
Headquartered in Kariya, Aichi prefecture, Japan, Denso Corporation was founded in 1945. The company is engaged in manufacturing automotive components and operates in more than 35 countries and regions.
For the year ended in March 2014, it posted a consolidated sales of $39.8 billion.