Mahindra & Mahindra Ltd.

Mahindra & Mahindra, auto major aims to buy up to 27% stake in Swaraj Automotives entailing an outgo of up to Rs 5.82 crore. The company has obtained nod from its board for consolidation of its shareholding in Swaraj Automotives (SAL) through a voluntary open offer.

The company likely to make a bid to SAL’s shareholders for acquiring up to 6,47,382 fully paid up equity shares of Rs 10 each constituting 27% of the total voting equity share capital of SAL. The offer price will be Rs 90 per equity share. Earlier in 2007, M&M had made an open offer for 20% stake in SAL by virtue of having acquired 43.3% in Punjab Tractors, which held shares in the company.

The company’s net profit after tax for the quarter has marginally declined by 2.78% of Rs 737.38 crore as compared to Rs 758.49 crore for September quarter of the year 2010. The company’s total income has increased by 34.75% at Rs 7592.14 crore for Q2FY12 as compared to Rs 5634.13 crore for the corresponding quarter of the previous year.