Shares of Swaraj Engines spiked on September 21 after Mahindra & Mahindra (M&M) agreed to buy a 17.41 percent stake in the firm from Kirloskar Industries for Rs 296 crore.
The acquisition will increase M&M's stake in Swaraj Engines to 52.13 from 34.72 per cent and make it a majority investor. The company proposes to acquire 21,14,349 equity shares at a price of Rs 1,400 apiece.
Swaraj Engines stock traded up about 13 percent to Rs 1,919. Kirloskar Industries jumped over six percent to Rs 1,735.
Following the acquisition, Swaraj Engines, which is currently an associate of M&M, would become a subsidiary of the company, the filing said.
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Swaraj Engines is in the business of manufacturing diesel engines and its components and a major supplier to M&M for its tractors division. It was promoted in 1985 by erstwhile Punjab Tractors which has since merged with M&M, and the then Kirloskar Oil Engines (now Kirloskar Industries).
Swaraj Engines clocked a total revenue from operations of Rs 1,138.15 crore for the year ended March.
Shares of M&M gained 1.36 percent at Rs 1321.
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