M&M acquires additional stake in Swaraj EnginesM&M - 1626 Change: -22.25 (-1.35 %)
In a regulatory exchange filing, M&M informed exchanges about acquisition of 21,14,349 equity shares constituting 17.41% of the paid up equity share capital of Swaraj Engines (SEL) from Kirloskar Industries (KIL) for Rs 296 crore i.e. Rs 1,400 per share (17% discount to yesterday’s closing price).
Post this stake purchase M&M’s stake in Swaraj Engines is set to increase to 52.13% vs. 34.72% earlier with Swaraj Engines now becoming a subsidiary company vs. the classification as associate company in the past. This is a small investment for M&M and things will not materially change for it. We view this transaction as more of a providing an exit to KIL.