New Delhi: Mahindra & Mahindra (M&M) Ltd on Tuesday stated it can purchase a further 17.41 per cent stake in Swaraj Engines Ltd from Kirloskar Industries Ltd (KIL) for Rs 296 crore. The acquisition will lead to growing the corporate’s stake in Swaraj Engines Ltd (SEL) to 52.13 per cent from 34.72 per cent, M&M stated in a regulatory submitting.
The corporate proposes to accumulate 21,14,349 fairness shares constituting 17.41 per cent of the paid up fairness share capital of SEL from KIL at a worth of Rs 1,400 per share, it stated.
Consequently, SEL, which is at present an affiliate of the corporate, would change into a subsidiary of M&M, the submitting stated.
Primarily based in Mohali, Punjab, SEL is within the enterprise of producing of diesel engines and its parts. It was promoted in 1985 by erstwhile Punjab Tractors Ltd, which has since merged with M&M, and the then Kirloskar Oil Engines Ltd (now KIL).
It had a complete income from operations of Rs 1,138.15 crore for the yr ended March 31, 2022, it stated.