Pricol gains on overseas acquisition

The stock up 8% to Rs 46 after the company announced the acquisition of auto component manufacturing firm in Brazil.

Pricol has rallied 8% to Rs 46 on the National Stock Exchange (NSE) after the company announced the acquisition of auto component manufacturing Company in Brazil, through its wholly owned subsidiary company.

The stock opened at Rs 42.20 and hit a high of Rs 47.40 on NSE. The trading volumes on the counter more than doubled with a combined 685,579 shares changed hands till 0948 hours on NSE and BSE.

“The board of directors of the company at the meeting held on December 11, 2014 has proposed to acquire 99.99% of stake in a Brazil based auto component manufacturing company through its wholly owned subsidiary incorporated in Spain,” Pricol said in a statement.

The aforesaid Company in Brazil achieved sales revenue of Rs 301 crore during the calendar year 2013.

This acquisition will enable Pricol to make a foray into the Brazilian Auto Component Industry. The aforesaid acquisition is expected to be completed by the end of January 2015, it added.