Tuesday, November 15, 2011
By Pranjal Gera
Mahindra & Mahindra proposes to take-over 27% stake in Swaraj Automotives
Home-grown utility major Mahindra & Mahindra has decided to purchase a 27 percent share in the Chandigarh, Punjab based company Swaraj Automotives Limited and will make an open bid to them. Mahindra & Mahindra’s members in the board have agreed upon this combined venture by means of open offer, the same was said in the filing to Bombay Stock Exchange.
As per the filing made by the company it said that the voluntary offer will be made to Swaraj Automotives Ltd’s shareholders in order to obtain 6, 47,382 fully paid equity shares with each of Rs 10 and this will comprise of the 27 percent of Swaraj Automotives Ltd’s total share capital.
The proposed offer of each equity share will be of Rs 90, the total price will not go beyond Rs 5,82,00,00 according to the takeover code by Stock Exchange Board of India. Delhi Stock Exchange has the listing of shares of Swaraj Automotives Ltd.
Prior to this, in February this year Mahindra & Mahindra had acquired a South Korea based Ssangyong Motor Company. Initially the company now plans to bring in Ssangyong Motor’s Sports Utility Vehicles (SUVs) such as Rexton and Korando.
With the launch of these premium vehicles the company will add an all new variety to its domestic range of vehicles that currently comprise of SUV’s Bolero, Scorpio and recently launched global SUV XUV 500 along with sedan Verito and MUV Xylo.
Despite the low in auto market the company has recorded an upward movement in sales of around 10 percent last month as compared to October sales last year.