Swaraj Engines Tops Over 2-Yr Peak, Hits New High As M&M Sets to Hike Stake

By Malvika Gurung — Shares of the diesel engines and components manufacturer Swaraj Engines (NS:) (SEL) zoomed 11.88% to Rs 1,897 apiece and rallied almost 14% to hit a new 52-week high of Rs 1,962 apiece on Wednesday. The scrip has jumped the most since June 2020.

The stock rallied after the mega-cap auto manufacturer Mahindra & Mahindra (NS:) informed in a regulatory filing that it would buy an additional stake of 17.41% in the company from Kirloskar Industries (NS:) for a cash consideration of Rs 296 crore.

The additional acquisition from Kirloskar Industries will raise M&M’s shareholding in Swaraj Engines to 52.13% from 34.72%. This will make SEL a subsidiary of M&M from an associate at present.

According to the exchange filing, M&M has proposed to buy 21,14,349 equity shares of SEL, translating to a 17.41% stake, priced at Rs 1,400 apiece.

The small-cap company’s scrip has gained nearly 18% so far in 2022 and is up almost 20% in the past year.

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