Tuesday, 22 November 2011

Phi Capital Picking 4.7% In Auto Component Firm Pricol for Rs 8.1 Crore

PE Investor are these days moving towards the Auto Component Sector. The firms are getting lucky these days and investors can see a good growth story in this sector specifically in Indian market.

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.

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.

Vikram, son of Mr. Vijay Mohan joined the business as a director in 2009 and is 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


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