Kirloskar Industries Ltd (KIL) announced a proposed liquidation of its 17.41 percent stake in Swaraj Engines Ltd (SEL) to Mahindra & Mahindra Ltd (M&M), on September 21, 2022.
It is proposed to divest through internal transfer between promoters through off-market transactions under the SEBI (Significant Stock Acquisition and Acquisition) Regulations, 2011, (SEBI Acquisition Code), at a price of approximately 1400 per share, i.e. not exceeding the limit stipulated by law.
After the conversion, the company’s equity and subsequent voting rights in the SEL will decrease from 17.41 percent to 0.00 percent of the SEL’s share capital.
Mahesh Chapriya, Managing Director of KIL, said: “We are pleased to enter into this agreement with M&M. Since the SEL shares were not core to our holdings and were illiquid, we decided to transfer our stake by selling it through an off-market transaction to the co-promoter. We plan to invest the proceeds of this transaction into our business and our group/affiliate companies 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 diversified into real estate development through its wholly owned subsidiary, Avante Spaces Ltd. The company also invests in the securities of group companies and has leased commercial space.
September 23, 2022