Pricol Limited Approves Demerger of DICVS Business into Pricol Autotech
Pricol Limited's Board approved a demerger of its Driver Information & Connected Vehicle Solutions (DICVS) business into Pricol Autotech Limited. Shareholders will receive a 1:1 share swap. The DICVS business had a turnover of ₹2,424.63 crore in FY26, representing 61.17% of total consolidated turnover.
The demerger involves a significant business unit contributing over 60% of revenue, leading to the creation of a new listed entity and a substantial change in the company's structure, which will have a high impact on stakeholders.
The demerger is a strategic move aimed at creating focused business platforms, simplifying the corporate structure, accelerating innovation, and unlocking shareholder value, which are all positive developments.
Pricol Limited's Board of Directors has approved a Scheme of Arrangement to demerge its Driver Information & Connected Vehicle Solutions (DICVS) business into Pricol Autotech Limited. This strategic move aims to create two focused business platforms: an automotive technology entity (Pricol Autotech) and an automotive & industrial precision engineering entity (Pricol Limited, continuing with Actuation, Control & Fluid Management Systems and Precision Products businesses).
The demerger is intended to simplify the group's corporate structure, allowing each business to sharpen its strategic focus, accelerate innovation, and respond more effectively to evolving customer requirements and market dynamics. The Scheme is subject to necessary statutory, regulatory, and shareholder approvals.
Shareholders of Pricol Limited will receive one equity share of Pricol Autotech Limited for every one equity share held in Pricol Limited (1:1 ratio). The equity shares of Pricol Autotech Limited are proposed to be listed on the National Stock Exchange of India Ltd and BSE Limited.
The DICVS business, which accounted for ₹2,424.63 crore in turnover for FY26 (61.17% of total consolidated turnover), focuses on smart mobility and integrated electronic solutions. The remaining businesses, ACFMS and P3L, will continue with Pricol Limited, supported by growing domestic and export footprints.
Mr. Vikram Mohan, Chairman & Managing Director of Pricol Limited, stated that the demerger is a significant milestone, enabling both entities to pursue focused growth strategies and create sustainable long-term value for stakeholders.
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Pricol Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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