Swaraj Engines stock surges over 11 per cent; here's why

The shares of Swaraj Engines Ltd have jumped over 11 percent on Wednesday, 21 September. The stock of the diesel engine manufacturer was trading on the BSE at Rs 1,881.75 at 12:55 pm, up by 11.03 percent. The surge in Swaraj Engines Ltd.’s stock price has come after it became a subsidiary company of Mahindra & Mahindra. This is the biggest jump in the company’s stock price since June 2020. The announcement by Mahindra & Mahindra yesterday had led to the stock opening at Rs 1,723.00 today on the S&P BSE Smallcap.According to PTI, Swaraj Engines had a total revenue from operations of Rs 1,138.15 crore for the year ended 31 March 2022. The company, which is based in Mohali, was promoted in 1985 by the erstwhile Punjab Tractors Ltd, which itself merged with Mahindra & Mahindra later. Punjab Tractors was the first company in the country to manufacture tractors domestically. Swaraj Engines was later promoted by Kirloskar Industries.Reason for surge in share price:Mahindra & Mahindra had announced in a regulatory filing on Tuesday that it will pay Rs 296 crore to acquire a 17.41 percent stake in the company from Kirloskar Industries Ltd (KIL). With this, Mahindra & Mahindra will take its total stake in Swaraj Engines to 52.13 percent. Swaraj Engines will thus be a subsidiary of Mahindra & Mahindra. The transaction will be complete by 30 September this year, as per the exchange filing.Swaraj Engines Ltd. is engaged in the manufacture and supply of diesel engines in the range of 22 HP to over 65 HP for fitment in tractors. As for Mahindra & Mahindra, the organisation is the world's largest tractor manufacturer by volume in FY 2022. Its domestic tractor market share went up 1.8 percent from last year to reach 40 percent recently. The stock price of the company was up by 0.50 percent at Rs 1309.35.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.