SAL AUTOMOTIVE LIMITED

Swaraj Automotives Limited (SAL) (formerly known Swaraj Automotives Limited) was incorporated on 20th November 1974. The Company adopted new name i.e. SAL Automotive Ltd. from 1st July, 2019. The Company was inaugurated by the Hon'ble President of India as 'Punjab Scooters Limited' and started manufacturing scooter named as 'Vijay Kesari'. The Company diversified into manufacturing of seats in 1986 and seat mechanism in 1994 in technological tie-up with Fuji Kiko of Japan. The company is engaged in manufacturing business of Automobile Components, which includes Tractor seats, LCV (Light Commercial Vehicles) seats, seat mechanisms for passenger cars & commercial vehicles and seat frames for commercial vehicles and agriculture Implements, which include Rotavators, Tractor trailers and Planter etc. The Company has manufacturing plant at Nabha located in the State of Punjab and second plant at Dharwad located in the State of Karnataka. The product line of the Company includes seats, seat adjusters/ sliders, seat recliners, and agri implements namely Rotavators & Tractor Trolleys. During the year 2016, Mahindra & Mahindra Ltd, one of the promoters of the Company (the Seller) entered into a Share Purchase Agreement on 16th October 2015 with b4S Solutions Private Ltd (the Acquirer) for sale of their entire equity stake of 71.19% held in the Company at Rs. 145.50 per share. The acquirer subsequently acquired the entire equity stake of 2.99% of other promoter, Punjab State Industrial Development Corporation (PSIDC), held in the Company, at the same rate. Thereafter, pursuant to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the acquirer had also made an open offer to the shareholders of the Company for acquiring another 25.82% equity shares of the Company. The entire process was successfully completed on 1st February 2016, taking b4S Solutions Private Limited' s equity holding in the Company to 88.28% and they became promoter of the Company. During the year 2017, B4S Solutions Private Ltd (b4S or the promoter) acquired the entire equity stake of 71.19% held by Mahindra & Mahindra Ltd (M&M), one of the then promoters of the Company (the Seller), by entering into Share Purchase Agreement with M&M on 16th October 2015. b4S subsequently also acquired the entire equity stake of 2.99% held by the then other promoter, Punjab State Industrial Development Corporation (PSIDC). Thereafter, pursuant to SEBI (SAST) Regulations, 2011, b4S made an open offer to the shareholders of the Company. The entire process completed on 1st February 2016 and b4S's total equity holding in the Company stood at 88.28%. To comply with requirements applicable regulations to restore public shareholding in the Company to a minimum of 25%, the promoter divested 158,359 equity shares to the public via three offers for sale during the period December 2016 and January 2017, which has brought down the promoter's shareholding in the Company to 81.68% as on March 31, 2017. The promoter proposes to meet its obligation to divest the remaining 6.68% of its shareholding in near future. During the year 2017-18, the Company set up new seat frames using robots of manufacturing facilities at Dharwad, Karnataka and the plant started its operations on 24th January, 2018. During the year 2018, b4S solutions Private Ltd (b4S or the promoter) acquired the entire equity stake of 71.19% held by Mahindra & Mahindra Ltd (M&M), one of the then promoters of the Company (the Seller), by entering into Share Purchase Agreement with M&M on 16th October 2015. b4S subsequently also acquired the entire equity stake of 2.99% held by the then other promoter, Punjab State Industrial Development Corporation (PSIDC). Thereafter, pursuant to SEBI (SAST) Regulations, 2011, b4S made an open offer to the shareholders of the Company. The entire process completed on 1st February 2016 and b4S's total equity holding in the Company stood at 88.28%. To comply with requirements applicable regulations to restore public shareholding in the Company to a minimum of 25%, the promoter divested 3,18,445 equity shares to the public via seven offers for sale during the period December 2016 to November 2017, which has brought down the promoter's shareholding in the Company to 75% as on March 31, 2018. Meanwhile on July 19, 2017, SEBI passed an interim order to prohibit Company, Directors, and Promoter from buying, selling, or otherwise dealing in securities of the Company, either directly or indirectly, due to non-compliant to Minimum public shareholding (MPS) requirement. After dilution of shareholding to 75% via OFS as mentioned above, the company achieved Minimum Public Shareholding as on 23rd November 2017. On February 14, 2018, SEBI passed a final order stating that there is no violation on part of Company/ Promoter considering enough to warrant any other enforcement action against the Company or its Directors. Further, SEBI found this matter to be disposed of without any further enforcement action. The Company started production in new shed at Nabha Plant which increased production capacity of rotavator from 1000 to 3000 per month in 2022-23.