Mahindra & Mahindra Ltd. has agreed to acquire 17.41% more stake in Swaraj Engines Ltd. from Kirloskar Industries Ltd. for Rs 296 crore.
The deal increases M&M's stake in Swaraj Engines to 52.13%, making the diesel-engines components maker a subsidiary of India's largest tractor firm.
M&M proposes to acquire 2,114,349 shares constituting 17.41% of the paid-up equity share capital of Swaraj Engines from Kirloskar Industries at Rs 1,400 apiece, according to an exchange filing on Tuesday. Consequently, Swaraj Engines will become a subsidiary of M&M, the filing stated.
Based in Mohali, Swaraj Engines is in the business of manufacturing of diesel engines and its components. It was promoted by Punjab Tractors Ltd., which has since merged with M&M and the then Kirloskar Oil Engines Ltd. (now Kirloskar Engines). It had a total revenue from operations of Rs 1,138.15 crore for the year ended March 31, 2022.
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