Utility vehicles major Mahindra & Mahindra has sold its 14.04 per cent stake in commercial vehicle maker Swaraj Mazda to Sumitomo Corporation of Japan for Rs40.03 crore.
Sumitomo has agreed to acquire the 14.72 lakh shares held in Swaraj Mazda by Punjab Tractors, a group company of M&M, at Rs272 per share through inter-se transfer, M&M said in a regulatory filing with stock exchanges.
With the acquisition, Sumitomo's stake in Swaraj Mazda will go up from 39.39 per cent to 53.52 per cent, giving it control of the firm. The stake sale will be completed by 6 January.
M&M had acquired the 14.04 per cent stake in Swaraj Mazda, after the acquisition of Punjab Tractors Ltd.
M&M had acquired 64.64 per cent stake in Punjab Tractors in March last year for over Rs1,400 crore. It bought off private equity firm Actis' 43.3 per cent stake in the company and followed it up with an open offer for 20 per cent.
In October M&M got shareholders' approval to amalgamate PTL with itself.
The Mahindra & Mahindra stock surged nearly 6 per cent on the bourses after the company announced the stake sale. The company's shares closed higher by 5.75 per cent at Rs270.45 after rallying to an intra-day high of Rs272.70 on the Bombay Stock Exchange.
On the National Stock Exchange, the scrip rose 6.18 per cent from its previous close and settled at Rs271.60. The scrip touched an intra-day high of Rs273.80. Over 12 lakh shares changed hands on the bourses.
Shares of Swaraj Mazda also rose 0.12 per cent to settle at Rs200.50 on the BSE. The scrip had touched an intra-day high of Rs230 on the bourse.