Mumbai: Mahindra and Mahindra’s open offer for picking up 20% in Swaraj Engines received a lukewarm response from shareholders, who tendered only 0.6% of their holdings.
The offer was for acquiring 2,483,964 fully paid up equity shares of Rs10 each, or 20% of the outstanding voting equity capital of the Swaraj Engines at Rs151 a share.
But only 7,417 shares were tendered, which amounted to a 0.06% stake in Swaraj Engines, M&M said in a filing to the Bombay Stock Exchange.
The share price of Swaraj Engines rose consistently ever since the open offer was announced. The scrip was trading at Rs191 on the Bombay Stock Exchange, much higher than the open offer price of Rs151.
On 12 March, M&M along with Mahindra Holdings and Finance Ltd had announced the open offer to shareholders of Swaraj Engines. The offer was open between 3-22 May.
However, on 21 May, Mahindra and Mahindra changed the timeline. As per the revised schedule, the offer would open on May 28 and close on June 16.
Swaraj Engines is a joint venture between Punjab Tractors Ltd (PTL) and Kirloskar Oil Engines Ltd. Originally set up to manufacture engines for PTL, Awaraj Engines has also supplied engine components to Swaraj Mazda.