Home-grown auto major Mahindra & Mahindra (M&M) has sold its entire 71.19 per cent stake in Swaraj Automotives Ltd (SAL), a manufacturer of seats and seat mechanisms, to b4S Solutions for ₹24.84 crore.
The company has entered into an agreement to sell 17.07 lakh shares of ₹10 each at ₹145.5 per equity share. The deal, which is subject to regulatory approvals, is expected to be completed by the first week of January, M&M said in a regulatory filing on Friday.
The New Delhi-based b4S Solutions manages telecom and transmission towers, manufacturing for packaging sector, automotive dealerships, service centres and manpower outsourcing. M&M had acquired the stake in SAL — which makes seats and mechanisms for tractors, commercial vehicles and passenger vehicles — when it acquired stake in Punjab Tractors, which held shares in the company.
M&M had acquired a 20 per cent stake in Punjab Tractors and its subsidiaries Swaraj Engines and Swaraj Automotives in 2007.
M&M also launched two new light commercial vehicles on its new Supro platform, an eight-seater diesel van Supro Van and a load carrier Supro Maxitruck.
“We are seeing some amount of positive sentiments in the industry for a variety of reasons such as the interest rate cuts and introduction of various infrastructural projects. We expect the rural economy to start showing signs of recovery,” M&M President & Chief Executive (Automotive) Pravin Shah said.
The prices of Supro Van starts at ₹4.38 lakah, while that of Maxitruck starts at ₹4.25 lakh (ex-showroom Thane).
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.