Kirloskar Industries Limited (KIL), made an announcement of the proposed divestment of its 17.41% stake in Swaraj Engines Limited (SEL) to Mahindra &Mahindra Limited (M&M) on September 21, 2022.
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~ 1,400 per share i.e., not exceeding the limits provided in proviso (i) of Regulation 10(1)(a) of the SEBI Takeover Code, the statement said.
Upon the said transfer, the shareholding and consequent voting rights of the Company in SEL would decrease from 17.41 % to 0.00% of the equity share capital of SEL.
Commenting on the announcement, Mahesh Chhabria, Managing Director, KIL, said “We are happy to get into this agreement with M&M. As SEL shares were not core to our holdings and were illiquid, we decided to monetise our shareholding by selling it thru off-market transaction to the Co-promoter. We plan to invest the proceeds from this transaction in our business and group companies/subsidiaries, in the due course.”
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