Mahindra & Mahindra Ltd has decided not to participate in the divestment of state-owned Punjab Tractors Ltd.

The company board decided not to submit its financial bid to purchase 23.49 per cent stake in PTL, the country's second largest tractor maker, from Punjab State Industrial Development Corporation Ltd, M&M informed the Bombay Stock Exchange on Friday.

When contacted, a M&M spokesman said, "We are out of the divestment process of Punjab Tractors."

He did not give any reason for the withdrawal.

The Punjab government had invited bids last December for sale of its 23.49 per cent stake in Punjab Tractors.

Earlier this week, Punjab government had extended the last date for submission of bids from July 21 to July 25.

M&M, India's largest tractor maker, was considered one of the front runners in the divestment process along with firms like Escorts, New Holland, John Deere, Commonwealth Development Corporation and a joint bid by Eicher and Newbridge.