Last updated: Oct 17, 2023 1:58 PM IST
Maruti Suzuki (image source: Reuters)
Maruti will issue preference shares of Rs 1.23 crore to Suzuki Motor Corporation (SMC) at Rs 10,420.85 each
Maruti will issue 1.23 crore preference shares to Suzuki Motor Corporation (SMC) at Rs 10,420.85 each to acquire Suzuki Motor Gujarat (SMG). “The consideration payable by the company for such purchase of 100 percent equity shares of SMG will be satisfied by way of issue and allotment of 1.23 crore equity shares of the company having face value of Rs 5 each to SMC , at a price of Rs 10,420 per equity share, on preferential basis,” the company said in a stock exchange filing on October 17.
Shares of Maruti Suzuki India Ltd (MSIL) fell from intraday high of Rs 10,797.85 per piece on NSE during morning deals and touched intraday low of Rs 10,565.30 per share, marking a decline of around 1. 30 percent from the closing price of Rs 10,704.50 per piece on Tuesday.
After the preferential share issue, Suzuki Motor Corporation’s Japanese equity stake in India’s largest passenger car maker will rise to 58.19 percent from 56.48 percent earlier.
The issuance of these shares follows the decision of Maruti’s board of directors to terminate the contract manufacturing agreement with Suzuki Motor Gujarat Pvt. Ltd. Moreover, Maruti exercised its option to acquire the shares of SMG from Suzuki Motor Corporation.
Regarding production, there will be no change in production, logistics, sales or associated costs. The vehicles previously supplied by SMG as a contract manufacturer will be delivered in the same manner as before, according to the company’s statement.
