Global private equity funds are showing significant interest in Pricol Ltd's plan to spin off its driver information and connected vehicle solutions (DICVS) business. According to reports from Mint, US-headquartered Advent International and Sweden-based EQT are among the PE players evaluating an investment in the demerged business. The talks are currently in early stages, with promoters not planning to dilute any stake. The potential investment will fund the company's expansion plans, which are currently being funded through internal accruals.
As reported by Mint, the transaction is currently undergoing due diligence, with the potential capital raise of around ₹5,000 crore going towards the company's inorganic expansion plans. Veda Capital Advisors is advising Pricol's promoters on the transaction. Post-demerger, the promoters will own 38.51% in the entity while the remaining stake will be held by public shareholders. The company's DICVS business generated a turnover of ₹2,424.63 crore for financial year 2026, representing 61.17% of the company's consolidated turnover.
According to Pricol's exchange filing, the board approved the demerger of the DICVS entity on 27 June 2026, which will now be called Pricol Autotech Ltd. The company stated that this strategic decision aims to create a simpler, sharper and more agile corporate entity to meet fast-changing market needs and technologies. Each business will have independent and dedicated management teams, enabling clear market access and clean operating models to better leverage growth opportunities in domestic and international markets.
As reported by Mint, Pricol's DICVS business focuses on smart mobility and integrated electronic solutions, offering products such as driver information systems, integrated infotainment systems, advanced e-cockpit solutions, and connectivity solutions including telematics, battery management systems, and sensors. These solutions cater to various vehicle segments including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, and tractors. Founded in 1975 by Vijay Mohan, Pricol operates with 15 manufacturing plants across the country and serves automotive original equipment manufacturers in India and overseas.
According to Mint, India's family-owned auto and industrial companies are increasingly attracting private equity interest. This follows recent deals including India Resurgence Fund's ₹2,000 crore acquisition of a majority stake in Fine Edge Engineering and Carlyle's diversified auto platform acquisition. India's auto component industry was valued at approximately $80.2 billion in FY25, with the country emerging as a global hub for auto component sourcing, exporting over 28% of production annually. The industry's export market is expected to reach $100 billion by 2026.
