Auto major Mahindra & Mahindra may buy Kirloskar Oil stake in Swaraj Engines, reports CNBC-TV18, quoting sources. Swaraj Engines will become a holding company for engine business of M&M post this stake buy.

M&M currently holds 33.2% stake in Swaraj Engines while Kirloskar Oil holds 17.39%. The move is unlikely to trigger an open offer as this is a inter-se promoter transfer.

When contacted, M&M said it would not comment on this story while the Kirloskar Group declined to comment.

At 12:13 pm, the M&M share was up 1.87% at Rs 626 in a mildly weak market. The Swaraj Engines share was abuzz at Rs 444, up Rs 17.45, or 4.09%.