M&M objects use of Swaraj brand name by Swaraj Mazda
M&M objects use of Swaraj brand name by Swaraj Mazda Mahindra & Mahindra-controlled Punjab Tractors (PTL) sent a notice to Swaraj Mazda over the use of brand name `Swaraj` in its products as well as the proposed rights issue, reports Economic Times. Private equity player Actis has also joined PTL, in its protest against the rights issue. The notice was issued prior to Swaraj Mazda`s board meeting to discuss the rights issue, asking it not to proceed with the proposal, till pending cases are sorted out. M&M said PTL had contractual rights over the Swaraj brand name, which was granted to sister company Swaraj Mazda more than 20 years ago. >The right to use the brand goes back to the time when PTL had 29% stake in Swaraj which continued after the `inter se promoter transfer` of 15% stake to Sumitomo. At present, Sumitomo owns 40% of Swaraj Mazda, followed by Actis with 17% and PTL with 14%. Shares of the M&M closed down Rs 7.95, or 1.12%, to Rs 699.4. The total volume of shares traded was 66,387 at the BSE. (Friday)
