Mahindra and Mahindra (M&M), a promoter of Swaraj Engines (SEL), held 42,16,792 equity shares of SEL representing 34.72% of its paid-up equity share capital.

M&M has proposed to acquire 21,14,349 Equity shares of SEL representing 17.41% of its paid-up equity share capital from Kirloskar Industries (KIL), also a promoter of SEL.

Post the acquisition, M&M would hold 63,31,141 shares or 52.13% stake in SEL.

The acquisition would be done on or after 27 September 2022. It would be done off market at a price of Rs 1400 per share.

The transaction is an inter se transfer of shares among promoters of SEL to consolidate the company's holding in SEL, M&M said.

SEL is into manufacturing and supplying of diesel engines in the range of 22 HP to above 65 HP. It also manufactures hi-tech engine components.

The company's net profit rose 17.50% to Rs 39.54 crore on a 26.58% increase in sales to Rs 398.35 crore in Q1 FY23 over Q1 FY22.

Shares of Mahindra & Mahindra rose 0.31% to Rs 1306.90 while those of Kirloskar Industries jumped 6.68% to end at Rs 1743.80 on the BSE.