"Will Not Allow A Hostile Takeover",Vikram Mohan, MD, Pricol | Minda Corp-Pricol Update

TL;DR

Minda Corp is rumored to be considering acquiring a 15% stake in Pre-Call, but Pre-Call's management denies any intentions of selling their stake or raising equity capital.

Transcript

exhaust based information and agencies that minda Corp is looking to acquire a 15 stake in pre-call via the reverse book building joining in right now is Vikram Mohan managing director at pre-call that's uh you know just States the facts right now because just a short while ago I believe there was a comment made by pre-call that there is no intent ... Read More

Key Insights

• 👨‍💼 Pre-Call's management is committed to the business and has turned it around financially.
• 🥺 They have signed technology agreements with leading global companies, positioning their products in the market.
• 💐 Pre-Call's healthy cash flow and order book support their confidence in future growth.
• ❓ The rumors of Minda Corp's potential acquisition are unconfirmed, and the management is treating them as speculative.
• 💪 Pre-Call has zero pledged shares and strong financials.
• 👥 Minda Corp's potential acquisition could create an interesting dynamic between the promoter group and the competitor.
• 🥹 The public holding of 63% in Pre-Call adds complexity to the situation.

Questions & Answers

Q: What is the status of Minda Corp's potential acquisition of a stake in Pre-Call?

The rumors of Minda Corp's potential acquisition are unconfirmed, and Pre-Call's management is surprised by the news. The promoters are committed to the business and have no plans to sell their stake.

Q: Is the potential acquisition considered a hostile takeover attempt?

Pre-Call's managing director does not consider it a hostile takeover attempt. They have spoken to institutional investors who are backing them, and their share price suggests shareholders are not likely to sell at the current market price.

Q: What is the next game plan for Pre-Call in case of a hostile takeover attempt?

Pre-Call is working with investment managers and their internal team to determine their next steps. They are committed to the business and will not allow a hostile takeover, preparing counter offers if necessary.

Q: Does Pre-Call have any existing business relationship with Minda Corp?

Pre-Call and Minda Corp are competitors, and Pre-Call's managing director was unaware of any business association between the two companies. The potential acquisition came as a surprise to them.

Key Insights:

• Pre-Call's management is committed to the business and has turned it around financially.
• They have signed technology agreements with leading global companies, positioning their products in the market.
• Pre-Call's healthy cash flow and order book support their confidence in future growth.
• The rumors of Minda Corp's potential acquisition are unconfirmed, and the management is treating them as speculative.
• Pre-Call has zero pledged shares and strong financials.
• Minda Corp's potential acquisition could create an interesting dynamic between the promoter group and the competitor.
• The public holding of 63% in Pre-Call adds complexity to the situation.
• The potential acquisition has created uncertainty, but the market remains stable with the Nifty at 18,000.

Summary & Key Takeaways

• Minda Corp is rumored to be planning to acquire a 15% stake in Pre-Call, but the rumors have not been confirmed.

• Pre-Call's management is committed to the business and has no plans to sell their stake or participate in open market transactions.

• The current ownership of the promoters in Pre-Call is 37%.