What exactly is the status currently with respect to Minda?
These are unconfirmed rumours. It has come as a surprise to us as well. The promoters stand absolutely committed to the business. We have turned around the business. We are on a very strong financial footing. We are long-term debt-free. We have technologies in place. We have signed in the recent past technology agreements with three class-leading companies globally, two from Europe and one from Silicon Valley to position our products out there.
We are generating substantial cash profits which will fund our expansion plans. I have been constantly talking about our expansion plans and how we intend to double our turnover in the coming years. Our application has been accepted by the ministry as well. So, I do not know where this baseless information is coming from.
If let us say Minda goes ahead with a secondary book building offer of 15.7% stake and where the promoters of Pricol are not looking at selling or participating in the open market transaction, then it is a hostile takeover attempt?
It is not a hostile takeover attempt if I may say so because ever since this news broke I have spoken to certain sections of the institution and investors who are all strongly backing us at this point in time. I do not see how it could be a hostile takeover attempt. Secondly, our share price closed at Rs 209 yesterday. I do not see any reason why shareholders will sell at Rs 209 at the current market price.
But that is exactly the point because it is a sizable block deal, almost 4.2% to 4.3% equity has changed hands on the exchanges. So what is the next game plan now? Any firefighting, any MO that you would have in case this turns out to be a hostile takeover? Who bought, who sold that we will only come to know later this evening?
We are working with our investment managers and our internal armoury to see what else we can do because I think it is a little early in the day right now but we will stand committed to this business and that is all that I can say. And we will not allow a hostile takeover. We will have our counter offers if necessary at the right time.
What is the current ownership of the promoters in the company?
It is 37%.Would you be looking at increasing your stake from the open market operations?
Not at this point in time. I would not like to comment on that.
Do you have any existing business relationship with Minda or this is more like a bolt out of the blue is suddenly coming out which you are not aware of?
This is a complete bolt out of the blue that I was not aware of. We have absolutely no business association with Minda. In fact, they are our competitors and yes so this has come as a bolt from the blue, yes. And I do not know how much of a credence to give to this information also because I am getting counter reports from the market saying that this is just a rumour.
Well, we do not know. So, we have not got any confirmation from Minda. So, I think as of now, it is completely speculative. But just to clear the air on this one and I do not want to get this one wrong because this is going to be a price sensitive information — if there is an open offer bid by the Minda Group, would Pricol be taking any countermeasures because 63% holding is still in public domain?
We will take appropriate countermeasures, yes.
So you are protected to take care and protect your interest in the company?
Absolutely.
And what you are confirming to us is that the promoters are not looking at participating or reducing their stake and you are fully committed to Pricol?
A thousand percent.
What gives you the confidence? If you get a good deal, why not get out? What gives you the confidence that you want to stay committed to it? It is not the first time promoters have sold out.
I am committed to this business because I know exactly what our growth prospects are. We are on the cusp of a large growth wave. Our market share has increased. We have a very healthy order book. We have a very healthy cash flow. So why would I want to sell when my company is seeing a big growth curve in the coming two to three years.
Is there a promoter pledge also which could be at risk?
We have zero pledge in the company and as a Pricol Group with other unlisted companies in the group all companies are debt-free and have cash reserves as well and there is not a single share that has been pledged by the promoters.
