Kirloskar Industries Ltd (KIL) announced the proposed divestment of its 17.41 per cent stake in Swaraj Engines Ltd (SEL) to Mahindra & Mahindra Ltd (M&M), on September 21, 2022.
The divestment is proposed through inter-se transfer amongst the promoters through off-market transactions under 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 limit provided in the Code.
Following the transfer, the shareholding and consequent voting rights of the company in SEL would decrease from 17.41 per cent to 0.00 per cent of the equity share capital of SEL.
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 through an off-market transaction to the co-promoter. We plan to invest the proceeds from this transaction in our business and group companies/ subsidiaries in due course.”
Kirloskar Industries Ltd is a public limited company on the Bombay Stock Exchange and the National Stock Exchange. The company was incorporated in 1978 and is engaged in wind power generation and has diversified into real estate development activities through its wholly-owned subsidiary, Avante Spaces Ltd. The company also invests in securities of group companies and has rented out commercial spaces.
September 23, 2022