L&T Eyes $50-$60 Billion Projects by FY25, Plans Major O2C Investments
Mahindra and Mahindra rallies 2% in a lacklustre market
Last Updated: 13th December 2022 - 02:08 am
The company rejigs its portfolio by increasing its stake in Swaraj Engines while reducing in Mahindra CIE Automotive.
In a press release on September 27, Mahindra and Mahindra announced that it plans to acquire 17.41% of the paid-up capital equity share capital of Swaraj Engines Ltd (SEL) from Kirloskar Industries Ltd. Upon acquisition, the shareholding and consequent voting rights of the company in SEL would increase from 34.72% to 52.13% of the Equity Share Capital of SEL.
Consequently, SEL which is currently an associate of the company would become a subsidiary. The proposed acquisition of a 17.41% stake in SEL will entail a cash consideration of Rs 296 crore at Rs 1400 per share for 21,14,349 shares, which is expected to be completed by September 30, 2022.
SEL is engaged in manufacturing and supplying diesel Engines in the range of 22 HP to above 65 HP for fitment in tractors to the Farm Equipment Sector of Mahindra & Mahindra Limited. Being core to the operations of the Farm Equipment Sector of the Company, the proposed transaction will fortify this core. SEL had total revenue from operations of Rs.1,138.15 crores for the year ended 31st March 2022.
In a separate press release, M&M informed that it has sold 82,42,444 equity shares representing 2.173% of the paid-up share capital of Mahindra CIE Automotive Limited, a listed associate of the Company (MCIE) at a gross price of Rs 285 per share amounting to Rs 235 crore. Following the sale, the shareholding of the Company in MCIE has come down from 11.427% to 9.254% of its share capital.
In intraday trades, the shares of M&M logged highs and lows of Rs 1261.80 and Rs 1212. At 12.40 pm, shares of M&M were quoting at Rs 1258.65, with a gain of 1.85% or Rs 22.90 a piece.
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Tanushree Jaiswal
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