Curated By: Shahrukh Shah
Last Updated: November 24, 2023, 14:00 IST
Maruti Suzuki. (Photo: Reuters)
With the allotment, SMC’s stake in Maruti Suzuki India (MSI) will enhance to 58.19 % from the sooner 56.48 %.
Maruti Suzuki India on Friday stated its board has authorised the allotment of over 1.23 crore shares to its father or mother Suzuki Motor Corporation (SMC) on a preferential foundation for the acquisition of one hundred pc stake in Suzuki Motor Gujarat. The firm’s board has authorised the allotment of 1,23,22,514 shares to SMC having face worth of Rs 5 every at a worth of Rs 10,420.85 per share, the auto main stated in a regulatory submitting.
As per the valuation report issued by RBSA Valuation Advisors LLP, the Rs 10,420.85 worth per share authorised by the Maruti Suzuki board is equal to Rs 12,841.1 crore in worth phrases. With the allotment, SMC’s stake in Maruti Suzuki India (MSI) will enhance to 58.19 % from the sooner 56.48 %.
Last week, Maruti Suzuki shareholders had authorised a proposal to problem shares on a preferential foundation to SMC as consideration for a associated social gathering transaction for the acquisition of 100 per cent stake in Suzuki Motor Gujarat (SMG). The MSI board, in its assembly held on July 31, 2023, had authorised the termination of the contract manufacturing settlement with SMG and the acquisition of its shares by SMC at a worth to be decided in accordance with all relevant legal guidelines and rules.
MSI Chairman R C Bhargava had stated that the share-swap technique adopted for the acquisition of SMG is much better for the shareholders of the corporate. He had reiterated that the intention of the acquisition was to align the manufacturing operations below a single administration, making an allowance for the corporate’s future development prospects when it envisages a complete manufacturing of 40 lakh models yearly by 2030-31.
Since 2014, SMC has invested Rs 18,000 crore in SMG. A totally-owned subsidiary of SMC, SMG provides its complete manufacturing completely to MSI. SMG, which was included in 2014, has a manufacturing facility in Gujarat with an put in capability of seven.5 lakh models every year.
Shares of MSI had been buying and selling 0.08 % up at Rs 10,501.95 apiece on the BSE.
