Pricol Ltd has approved a scheme to demerge its driver information and connected vehicle solutions business into a separate listed entity.
The Coimbatore-based automotive technology company announced on Monday that its Board of Directors has sanctioned the restructuring, which aims to isolate its high-growth digital and connectivity segments from its traditional precision engineering operations.
The resulting company is proposed to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
This move aligns with a broader trend among Indian auto-component manufacturers to spin off specialized units to allow investors to value distinct business models separately.
By creating a standalone vehicle for its connected car technologies, Pricol seeks to highlight the growth potential of its digital offerings, which are increasingly critical as vehicles become more software-defined.
The demerger is expected to require regulatory approvals and shareholder consent before implementation.