Minda Corporation, the auto component maker, has acquired 15.70 per cent of the equity of Pricol, leading to questions on whether it is a hostile takeover attempt.

The stake purchase was done in the open market, and stock exchange filings by Pricol, which is a leading dashboard maker, show it was unaware about the transaction till it was reported by the media and at the stock exchanges.

Minda, however, said that the investment is purely “financial’’ in nature and that it does not provide the company any special rights in Pricol other than the rights as a shareholder.

Minda disclosed that on Friday it acquired 1,91,40,342 equity shares of Pricol, representing a little over 15.70 per cent of Pricol’s total issued and paid-up equity share capital.

The shares were acquired at an average price of Rs 208.98 per share aggregating to Rs 400 crore.

Shares of both the companies ended in the red on Friday. While the Pricol share settled 4.44 per cent lower at Rs 199.05 on the BSE, Minda fell 4.58 per cent to end at Rs 4,018.10.

The transaction led to Vikram Mohan, managing director of Pricol, issuing a rare statement to the bourses where he indicated that it will allow a hostile takeover by Minda.