Interesting development. I think Pricol promoters have not shown a proactive attitude in increasing their stake in the company in the last three months. They could have increased their stake by 10% in the last three months or could have brought a strategic investor in order to avoid any kind of hostile takeover. Pricol promoter’s relationship with the TVS family goes a long way. Stake increase by the promoter group or a strategic investment by the TVS group would have given more confidence to all the stakeholders involved including employees of the company. If a tiger has entered your house then you can’t expect it to sit quietly and eat fruits offered by you. Minda Corp’s intention never seemed benign from the beginning. Moreover, two companies can have a totally different way of doing business and a hostile takeover can be the worst thing for the employees and senior management of the organization which has been targeted. Let’s see how things move forward in the days ahead.
Disclosure – Invested in Pricol
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