The offer was made on the same terms the company had given to private equity firm Actis and Mohit Burman for acquiring their 29 per cent and 14.3 per cent stake respectively.
The offer will open on May 3 and close on May 22, Kotak Mahindra Capital (Manager to the open offer on behalf of M&M) said.
After the transaction, M&M would have 63.3 per cent control of the company and at the price of Rs 360 a share, the acquisition could cost an estimated Rs 1,391 crore.
It would also full management control of Punjab Tractors Ltd, which makes tractors under the brand 'Swaraj'. PTL is a significant player in the tractor industry, having been in operation since 1974.
Its 'Swaraj' brand of tractors and farm equipment enjoy strong brand loyalty with customers. Going by the price of Rs 360 per share for the 43.3 per cent stake representing 2.63 crore shares (26.3 million) in PTL for which Mahindra & Mahindra on March 9 signed a deal -- the enterprise value of Punjab Tractors is pegged at a whopping Rs 2,187 crore (Rs 21.87 billion).
Mahindra & Mahindra had said it will carry out the transactions along with its subsidiary Mahindra Holdings and Finance Ltd, which agreed to acquire the stake from Actis Group and the investment companies of the Burman family (promoters of Dabur), subject to the receipt of requisite approvals.
In a related development, Mahindra and Mahindra also offered to buy 20 per cent stake, representing 24.83 lakh shares in Swaraj Engines Ltd at Rs 151 per share.
SEL is a joint venture between PTL and Kirloskar Oil Engines Ltd. The open offer, if fully subscribed, would cost an additional Rs 37.49 crore (Rs 374.9 million). The offer opens on the same day as that for PTL.
In 2003, Actis had acquired a 23.5 per cent stake in PTL from Punjab government through an official tender. Prior to acquiring the stake from state government, the private equity firm had bought a 4.9 per cent stake through open market.
Besides buying out Actis, M&M also acquired the 14.5 per cent stake of Mohit Burman in the venture.
