Swaraj Engines Limited (SEL) is primarily manufacturing diesel engines for fitment into 'Swaraj' tractors being manufactured by Mahindra & Mahindra Ltd. (M&M). SEL is supplying diesel Engines in the range of 20 HP to 65 HP. Since the start of commercial operations in 1989-90, Company has supplied around 1.3 million engines for fitment into 'Swaraj' tractors. Mahindra & Mahindra Limited (M&M) is the holding Company of the Company and holds 52.12% of the paid-up capital equity share capital of the Company as on 31st March, 2024.
Swaraj Engines Ltd, a Joint Venture between Punjab Tractors Ltd and Kirloskar Engines was set up primarily to manufacture engines for supply to Punjab Tractors. The Company was incorporated in September, 1985 under the Management Control of Punjab Tractors to Manufacture and market diesel engines ranging from 15hp to 80hp. It supplies 5 types of Engines from 20HP range to 50HP range to Punjab Tractors Ltd(PTL). In addition to engines, it manufactures high-tech engine components for Swaraj Mazda. Since the operations in 1989-90, SEL supplied over 2,40,000 engines for fitment into Swaraj Tractors being produced and sold by PTL.
The Companies initial public offer and allotment was in 1989. The Company came out with a Public Issue aggregating to Rs.0.89 crores to part-finance Rs.4.5 crore project to manufacture 16,000 diesel engines. The Technology was provided by KOEL (Kirloskar Oil Engines Ltd). In the First year of full operations, 1989-90 the company declared its maiden dividend of 20% The Company has its plant at SAS Nagar Ropar Punjab.
During 1996-2000 the Company expanded engine assembly capacity to 36,000 per annum on 2 shift basis. SEL also commissioned Matching Shop facilities for Manufacturing high-tech engine components. In the year 1999, Swaraj Engines also set-up facilities for Manufacturing high-tech engine components for Swaraj Mazda Vehicles such as Cylinder block and cylinder head.
During 2002-2003 Punjab State Industrial Development Corporation (PSIDC) initiated a disinvestments process covering entire Equity stake of 23.49% held by it in Punjab Tractors Ltd(Promoters of the Company with 33% stake). CDC Financial Services(Mauritius) Ltd (CDCFS) was the Successful bidder for acquiring PSIDC's stake of 1,42,74,000 shares @153/- per share. As per SEBI Guidelines, CDCFS & CDC-PTL made a public announcement regarding an offer to the public to buy upto 20% of Company's total paid up equity i.e 8,27,988 shares @ Rs.205/- per share.
Two major Shareholders of Punjab Tractors Ltd. (PTL) namely CDC/Actis Group and Burman family had entered into a Share Purchase Agreement (SPA) on 8th March, 2007 with Mahindra & Mahindra Ltd. (M&M) and Mahindra Holdings & Finance Ltd. (MHFL) for sale of their aggregate equity stake of 43.3% in PTL at Rs. 360/- per share. Thereafter, M&M and MHFL had made an open offer to the Shareholders of PTL for acquiring another 20% equity of PTL. The entire process was completed in early July 2007, which took Mahindra Group's total equity holding in PTL to 64.64%. Through the applicable SEBI guidelines, M&M & MHFL made an open offer in end May 2007 to buy upto 20% of SEL's total paid up equity @ Rs. 151/- per share and by response in their open offer, they acquired some 7,000 shares of the Company.
On approval upon the Scheme of Amalgamation, Punjab Tractors Limited (PTL) merged with Mahindra & Mahindra Limited (M&M) in 2008-09, effective from 1st August, 2008. Resultant, the Scheme of Merger was effective from 16 February, 2009 and on completion of the said Merger, the shareholding of PTL in the Company (33.2%) was transferred in favor of M&M.
Company enhanced the capacity to 1,50,000 engines per annum in 2022. On September 27, 2022, Kirloskar Industries Limited, one of the promoters of the Company, sold its entire equity stake of 21,14,349 shares, representing 17.41% of the paid-up equity share capital of the Company to Mahindra & Mahindra Limited (M&M) through inter-se transfer amongst the promoters. With this additional acquisition, M&M equity stake in the Company stood 52.13% and the Company became the subsidiary of M&M. Prior to the above additional acquisition of equity shares, the Company was an Associate Company of M&M.