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).