Pricol Limited (BSE: 540293 & NSE: PRICOLLTD), one of India’s leading automotive technology and precision engineering products and solutions company, has approved a scheme of arrangement to demerge its Driver Information & Connected Vehicle Solutions (‘DICVS’) business undertaking into Pricol Autotech Limited. Post the demerger, Pricol Limited will continue to focus on its Actuation, Control & Fluid Management Systems (‘ACFMS’) and Precision Products (‘P3L’) businesses.

Veda Corporate Advisors (“VedaCorp”) acted as the exclusive corporate advisor for the demerger.

The strategic demerger will create two focussed business platforms – an automotive technology platform (Pricol Autotech Limited) and an automotive & industrial precision engineering platform (Pricol Limited) to meet the fast-changing technology needs and dynamic market realities.

Shareholders of Pricol Limited will receive one fully paid-up equity share of Pricol Autotech Limited for every one fully paid-up equity share held in Pricol Limited (1:1 share entitlement ratio), resulting in the shareholding of Pricol Autotech Limited mirroring the shareholding of Pricol Limited, subject to the Scheme becoming effective. The resulting company is proposed to be listed on the National Stock Exchange of India Ltd and the BSE Limited. The proposed scheme remains subject to the receipt of the requisite statutory, regulatory and shareholder approvals for the Scheme.