Swaraj Engines surges 15% as M&M plans to buy additional 17.41% stake

Shares of Swaraj Engines (SEL) hits a fresh 52-week high of Rs 1,945 on the BSE, surging 15 per cent in Wednesday's intra-day trade, after Mahindra & Mahindra (M&M) proposed to buy additional 17.41 per cent stake in the diesel engines' company for Rs 296 crore. The stock surpassed its previous high of Rs 1,800, which it had touched on October 19, 2021.

"The company proposes to acquire 2.11 million equity shares, constituting 17.41 per cent of the paid up equity share capital, of SEL from Kirloskar Industries (KIL)," M&M said in an exchange filing. M&M proposed to buy shares of SEL from KIL at a price of Rs 1,400 per share.

With this, M&M's stake in SEL would increase from 34.72 per cent to 52.13 per cent. Consequently, SEL, which is currently an Associate of the company, would become a subsidiary of the company, M&M said. The transaction will be complete by September 30, 2022.

SEL is engaged in manufacturing and supplying of diesel Engines in the range of 22 HP to above 65 HP for fitment in tractors to the farm equipment sector of M&M.

At 9:28 AM, SEL was trading 13 per cent higher at Rs 1,913 on the BSE, as compared to 0.07 per cent rise in the S&P BSE Sensex. Meanwhile, the stock of KIL, too, hit a 52-week high of Rs 1,810, ralling 11 per cent in the intra-day trade, while M&M was up 1 per cent at Rs 1,320.50.