Kirloskar Industries Ltd (KIL) on September 22 said it has proposed to divest its 17.41 percent stake in Swaraj Engines Ltd to Mahindra & Mahindra (M&M), at a price of Rs 1,400 per share.
"The divestment is proposed through inter-se transfer amongst the promoter through off-market transaction under Regulation 10(1)(a)(ii) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, (SEBI Takeover Code), at a price of Rs 1,400 per share," the company said in a press release.
Upon the said transfer, the shareholding and consequent voting rights of KIL in Swaraj Engines would decrease from "17.41 percent to 0.00 percent of the equity share capital", it added.
As Swaraj Engines' shares were not core to the company's holdings and were illiquid, "we decided to monetise our shareholding by selling it through the off-market transaction to the co-promoter," KIL managing director Mahesh Chhabria said.
"We plan to invest the proceeds from this transaction in our business and group companies/subsidiaries, in the due course," Chhabria added.
The shares of Swaraj Engines traded at Rs 1,786.45 apiece on the BSE at the end of market hours on September 22, which was 1.7 percent lower as against the previous day's close.
For the quarter ended June 2022, Swaraj Engines had reported a net profit of Rs 39.54 crore, which was higher as compared to Rs 33.65 crore clocked in the corresponding period of last year.
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