Mahindra & Mahindra(M&M) said it will acquire an additional 17.41 percent stake in Swaraj Engines Ltd from Kirloskar Industries Ltd (KIL) for Rs 296 crore.
The acquisition will result in increasing the company’s stake in Swaraj Engines (SEL) to 52.13 percent from 34.72 percent, Mahindra & Mahindra said in a regulatory filing.
The company proposes to acquire 21,14,349 equity shares constituting 17.41 percent of the paid-up equity share capital of SEL from KIL at a price of Rs 1,400 per share, it said.
Consequently, SEL, which is currently an associate of the company, would become a subsidiary of M&M, the filing said.
Based in Mohali, Punjab, SEL is in the business of manufacturing diesel engines and its components. It was promoted in 1985 by erstwhile Punjab Tractors, which has since merged with M&M, and the then Kirloskar Oil Engines (now KIL).
It had total revenue from operations of Rs.1,138.15 crore for the year ended March 31, 2022, the company said.
Lately, The company said it has open bookings for more than 240,000 units for five SUV models, including more than 100,000 units for the new Scorpio. It claims that it has the market leader position, with 17% share in Q1FY23 in the SUV revenue segment.
On the electric vehicle front, the company hopes to regain the leadership position, driven by the recently showcased InGlo platform, which will deliver five new electric SUVs under ‘Mahindra Born electric vision’ with critical components coming from VW.