Swaraj Engines Ltd, a Joint Venture between Punjab Tractors Ltd and Kirloskar Engines was set up primarily to manufacture engines for supply to Punjab Tractors. The Company was incorporated in Sep 85 under the Management Control of Punjab Tractors to Manufacture and market diesel engines ranging from 15hp to 80hp.
Swaraj Engines Ltd (SEL) supplies 5 types of Engines from 20HP range to 50HP range to Punjab Tractors Ltd(PTL). In addition to engines, the Company also manufactures high-tech engine components for Swaraj Mazda. Since the Companies Operations in 1989-90, SEL has supplied over 2,40,000 engines for fitment into Swaraj Tractors being produced and sold by PTL.
The Companies initial public offer and allotment was in 1989. The Company came out with a Public Issue aggregating to Rs.0.89 crores to part-finance Rs.4.5 crore project to manufacture 16,000 diesel engines. The Technology was provided by KOEL (Kirloskar Oil Engines Ltd). In the First year of full operations, 1989-90 the company declared its maiden dividend of 20% The Company has its plant at SAS Nagar Ropar Punjab.
During 1996-2000 the Company expanded engine assembly capacity to 36,000 per annum on 2 shift basis. SEL also commissioned Matching Shop facilities for Manufacturing high-tech engine components. In the year 1999, Swaraj Engines also set-up facilities for Manufacturing high-tech engine components for Swaraj Mazda Vehicles such as Cylinder block and cylinder head.
During 2002-2003 Punjab State Industrial Development Corporation (PSIDC) initiated a disinvestments process covering entire Equity stake of 23.49% held by it in Punjab Tractors Ltd(Promoters of the Company with 33% stake). CDC Financial Services(Mauritius) Ltd (CDCFS) was the Successful bidder for acquiring PSIDC's stake of 1,42,74,000 shares @153/- per share. As per SEBI Guidelines, CDCFS & CDC-PTL made a public announcement regarding an offer to the public to buy upto 20% of Company's total paid up equity i.e 8,27,988 shares @ Rs.205/- per share.
The Board of Directors in their meeting held on June 17, 2005 announched bonus issue in the ratio of 2:1 by Capitalization of General Reserve