Punjab Tractors to get Rs 40 crore from sale of its stake in Swaraj Mazda

31 Dec 2008

Punjab Tractors has 1,472,000 shares of Rs 10 each, which represents about 14.04% stake in Swaraj Mazda.  Currently, Japan based Sumitomo Corporation has 4,140,953 shares representing about 39.49% stake in Swaraj Mazda.

Punjab tractors has entered into a Memorandum of Understanding dated 30th December 2008 with Sumitomo Corporation to sell its 14.72 lakh shares in Swaraj Mazda at Rs 272 per share and the date of transfer would be 6th January 2009. In the process, Punjab tractors will get Rs 40.04 crore and the profit (before tax) from this transaction will be about Rs 38.57 crore. 

Punjab tractors reported 280% spike in net profit to Rs 49.7 crore on 63% surge in net sales to Rs 622.1 crore in the six months ended September 2008.  Mahindra & Mahindra owns 64.6% stake in Punjab Tractors, and the latter is in the process of being merged with flagship company Mahindra & Mahindra.

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