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Swaraj Engines hits new 52-week high as M&M proposes to acquire 17.41% stake

SEL manufactures and supplies diesel engines ranging from 22 HP to 65 HP for use in tractors to Mahindra & Mahindra Limited's Farm Equipment Sector.

September 21, 2022 10:03 IST | India Infoline News Service
Mahindra & Mahindra Limited informed that the company proposes to acquire 21,14,349 equity shares, aggregating to 17.41% of the paid-up equity share capital of Swaraj Engines Limited from Kirloskar Industries Limited.

Following this development, Swaraj Engines was trading 13.39% higher at Rs1,921.85 per piece, against its previous closing of Rs1,694.85 on the BSE. The counter hit a new 52-week high of Rs1,950 so far.

The company stated that upon the said acquisition, Mahindra’s shareholding in SEL would increase from 34.72% to 52.13% of the equity share capital of SEL. As a result, Swaraj Engines, the now associate company, will become a subsidiary of the company.

SEL manufactures and supplies diesel engines ranging from 22 HP to 65 HP for use in tractors to Mahindra & Mahindra Limited's Farm Equipment Sector.

The acquisition will be at a price of Rs1,400 per share aggregating to an approximate amount of Rs296 crore, payable in cash. Mahindra seeks to complete the transaction by September 30, 2022.

For the year ended March 31, 2022, SEL had total revenue from operations of Rs1,138.15 crore.

At around 10.06 AM, Mahindra & Mahindra was trading at Rs1,302.05 apiece, down by 0.07% from its previous closing of Rs1,302.90 on the BSE. The scrip touched intraday high and low of Rs1,322.40 and Rs1,299.30 respectively.

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