Pricol to demerge Rs 2,400 crore DICVS into Pricol Autotech

Pricol Limited plans to transfer its Driver Information and Connected Vehicle Solutions business, which generated approximately Rs 2,400 crore in FY26 and represented around 60% of consolidated revenue, to Pricol Autotech under a proposed demerger. Eligible Pricol shareholders are expected to receive one Pricol Autotech equity share for every Pricol equity share held.

What business will Pricol Autotech contain after the demerger?

Pricol Autotech will contain Pricol's Driver Information and Connected Vehicle Solutions, or DICVS, business, comprising instrument clusters, telematics, sensors and e-cockpit solutions. The 13 November 2026 announcement says the business supplies original equipment manufacturers, or OEMs, across two-wheelers, three-wheelers, four-wheelers, commercial vehicles and off-highway segments.

The DICVS business reported approximately Rs 2,400 crore of revenue in FY26, equal to around 60% of Pricol's consolidated revenue. The proposed separation would therefore place the business responsible for roughly three-fifths of FY26 consolidated revenue in Pricol Autotech, while the other operations would remain with Pricol.

Pricol's board approved the Scheme of Arrangement on 27 June 2026. Pricol Autotech was incorporated on 21 February 2026, and consequently had no turnover applicable for the preceding financial year; the Rs 2,400 crore figure applies to the DICVS business proposed to vest in it once the scheme takes effect.

The announcement describes the transferred portfolio as an automotive-electronics business with existing products spanning driver information and connected vehicles. Management said the separation is intended to provide Pricol Autotech with focus and independence as it develops instrument clusters, connected-vehicle products and e-cockpit solutions.

Which businesses will remain with Pricol?

Pricol will retain its Actuation, Control and Fluid Management Systems, or ACFMS, and Precision Products businesses after DICVS transfers to Pricol Autotech. The Polymer business will continue through Pricol Precision Products Private Limited, Pricol's wholly owned subsidiary, according to the 13 November 2026 release.

Before the proposed demerger, Pricol describes its three operating verticals as DICVS, ACFMS, and Precision and Polymer Products. Afterward, DICVS would become the business of Pricol Autotech, whereas ACFMS and Precision Products would remain at Pricol and Polymer would remain within the group's subsidiary structure.

The Mohan family will continue to own and manage the businesses retained by Pricol, with no change in its shareholding in Pricol. This contrasts with Pricol Autotech, where the promoter group has agreed to sell its entire proposed 38.51% shareholding after the demerger, listing and other transaction conditions are completed.

Vikram Mohan, chairman and managing director, said on 13 November 2026 that Pricol would continue to focus on growing its retained businesses. He said the proposed demerger would allow Pricol Autotech to pursue its next phase as a dedicated business, while Pricol's remaining operations stay under the current promoter group's ownership and management.

How will Warburg Pincus acquire control of Pricol Autotech?

Topaz Terrace Investments B.V., an affiliate of Warburg Pincus LLC, has agreed to acquire the promoter group's entire proposed 38.51% stake in Pricol Autotech. The aggregate consideration for this stake is up to Rs 1,663.07 crore, subject to the terms of the Share Purchase Agreement.

Pricol will not receive any consideration from the proposed stake sale. The proceeds will go to the promoter and promoter-group sellers, including Vijay Mohan, Vikram Mohan, Vanitha Mohan, Viren Mohan, Manasa Mohan, Madhura Mohan and four named promoter-group companies.

After the scheme becomes effective and Pricol Autotech is listed, the Warburg Pincus affiliate is required to make an open offer to public shareholders. The offer can seek to acquire up to an additional 26% of Pricol Autotech's share capital under Securities and Exchange Board of India, or SEBI, takeover regulations.

The company said the buyer would acquire control after the promoter-stake purchase and completion of the open offer. The sellers would then cease to control Pricol Autotech and seek reclassification from its promoter and promoter-group category in accordance with applicable law.

What will Pricol shareholders receive and what remains pending?

Eligible Pricol shareholders are expected to receive one Pricol Autotech equity share for each Pricol equity share they hold under the scheme approved on 27 June 2026. Pricol Autotech is proposed to list its shares on the National Stock Exchange of India, or NSE, and BSE Limited, or BSE.

The share entitlement remains proposed because the scheme has not yet become effective. The disclosed sequence is for the demerger to take effect, Pricol Autotech to list on NSE and BSE, the open-offer period to expire, and the promoter-stake transaction to complete after agreed conditions precedent are met.

The scheme and transaction require applicable approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the Competition Commission of India. The disclosure also identifies listing of Pricol Autotech and completion of the open-offer process as conditions to completing the stake acquisition.

Warburg Pincus said it aims to support Pricol Autotech through investment in technology and talent, expanded capabilities and customer relationships, and disciplined strategic acquisitions. The announcement does not state a post-transaction revenue target, acquisition timetable or completion date for the demerger and stake sale.

Conclusion

The proposed transaction would separate Pricol's approximately Rs 2,400 crore FY26 DICVS business, which represented around 60% of consolidated revenue, from ACFMS, Precision Products and Polymer operations. Pricol Autotech would hold the automotive-electronics portfolio, while Pricol would retain the other businesses and the Mohan family would keep its existing ownership and management position in Pricol.

The next items to watch are approvals from shareholders, creditors, stock exchanges, SEBI, the National Company Law Tribunal and the Competition Commission of India, followed by Pricol Autotech's proposed NSE and BSE listing. After these steps and the open-offer period, Warburg Pincus plans to complete its proposed purchase of the 38.51% promoter stake and pursue investment, capability expansion and strategic acquisitions.