Japanese promoter Sumitomo Corporation has sold its 11 percent stake in Punjab-based commercial vehicles maker, SML Isuzu. The stake off-loaded by the promoter has been bought by Isuzu Motors of Japan who were among the existing shareholders in the company. Isuzu Motors earlier had 4 percent stake in the truck maker. Now, they own 15 percent of total stake in SML Isuzu.
Reacting to this, SML Isuzu's shares listed on the BSE index rose by 3.76 percent to Rs 397 going into the weekend. This means Sumitomo's equity stake in the paid-up capital of the automaker now stands at 43.96 per cent. The Indian company was started under the name of Swaraj Vehicles Ltd. back in 1983. A year later, a joint venture and technical support agreement was signed between Punjab Tractor Ltd. and Mazda Motor Corporation, Japan & Sumitomo Corporation, Japan. Thus, the company was renamed as Swaraj Mazda Ltd.