Punjab Tractors surges 10% on Sumitomo deal

MUMBAI: Punjab Tractors, a unit of Mahindra and Mahindra, rose nearly 10 per cent after Japan's Sumitomo Corp agreed to buy out the Indian firm's stake in truck maker Swaraj Mazda.

Mahindra & Mahindra will sell its remaining stake of 14.4 per cent held in Swaraj Mazda to Sumitomo Corporation. Sumitomo already has a 39.49-per cent stake in the tractor and commercial vehicle company, Swaraj Mazda Ltd.

The deal, which would lead to the transfer of 14.72 lakh shares of Punjab Tractors to Sumitomo at a price of Rs 272 a share, would increase the share of the Japanese corporation in Swaraj Mazda to 53.53 per cent.

At 10:40 am, Punjab Tractors shares were trading up 9.45 per cent at Rs 101.90, while Swaraj Mazda shares climbed 5.9 per cent to Rs 218.05.