Pricol up over 11%

Pricol has been doing pretty well in today morning trades. The stock is currently up over 11% at Rs.18.60, close to its upper circuit limit of Rs.20.10. It2 52-week high is at Rs.21.95.

The stock is buzzing today after the company announced that it has its proposal of slump sale has been approved by the shareholders through the postal ballot. The  Coimbatore-based automotive instruments and precision engineering company will transfer Denso Technology Instrument Cluster to its wholly owned subsidiary, Pricol Components Ltd, on a slump sale basis.

Denso services companies manufacturing four-wheeler personal passenger vehicles at its locations in Coimbatore and Gurgaon. Its clientele includes mainly Maruti and Toyota. This transfer on slump sale  would pave the way to subsequently form a JV for the launch of new products by the JV to be supplied to Japanese carmakers in the country. Financial aspects of the slump sale have not been divulged.