Warburg Pincus will acquire the promoters’ 38.51% stake in Pricol Autotech for up to ₹1,663 crore, giving the private equity firm a path to become the largest shareholder of the demerged automotive technology business after its listing.
Pricol Limited said in an exchange filing that its Board had approved the sale of the entire promoter shareholding in Pricol Autotech. The stake comprises 4,69,34,833 equity shares, representing 38.51% of the paid-up equity share capital of the proposed listed entity.
The transaction is linked to Pricol’s plan to demerge its Driver Information and Connected Vehicle Solutions (DICVS) business into Pricol Autotech Limited. Pricol had announced the demerger plan in June 2026. The promoter stake sale is to take place following the demerger and listing of Pricol Autotech, according to the company.
Warburg Pincus will also make a mandatory open offer to public shareholders in accordance with Securities and Exchange Board of India regulations. The open offer would allow the private equity firm to acquire up to an additional 26% of Pricol Autotech’s share capital.
The DICVS business is central to Pricol’s operations. It reported approximately ₹2,400 crore in revenue in FY26, accounting for around 60% of Pricol’s consolidated revenue. Its product portfolio includes driver information systems, instrument clusters, telematics, sensors, e-cockpit solutions and other automotive electronics.
The business supplies products and solutions to manufacturers across two-wheelers, three-wheelers, four-wheelers, commercial vehicles and off-highway segments. Its ownership transition therefore comes as India’s vehicle industry is expanding its use of connected systems and electronic interfaces, although the filing does not provide a separate forecast for the business after the demerger.
Pricol Chairman and Managing Director Vikram Mohan said the proposed demerger would give Pricol Autotech the focus and independence to realise its potential. He described Warburg Pincus as a suitable partner because of its resources, global connections and automotive sector expertise.
“We believe Warburg Pincus, with its long and storied history both in India and globally, extensive resources, global connections and deep automotive sector expertise, is the right custodian to take the business forward into the next phase of its growth story,” Mohan said.
Anish Saraf, Managing Director at Warburg Pincus, said the firm looked forward to partnering with Pricol Autotech’s management and employees to support the company’s long-term ambitions and expand its presence in India and internationally.
The transaction will require the completion of the demerger, the listing of Pricol Autotech and the regulatory process connected with the open offer. Veda Corporate Advisors acted as the exclusive financial adviser to the deal.
