New Delhi: Maruti Suzuki India on Friday stated its board has authorized the allotment of over 1.23 crore shares to its mother or father Suzuki Motor Corporation (SMC) on a preferential basis for the acquisition of a 100 per cent stake in Suzuki Motor Gujarat. The firm’s board has authorized the allotment of 1,23,22,514 shares to SMC having face worth of Rs 5 every at a value 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 value per share authorized 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 improve to 58.19 per cent from the sooner 56.48 per cent.
Last week, Maruti Suzuki shareholders had authorized a proposal to issue shares on a preferential basis to SMC as consideration for a associated celebration transaction for the acquisition of a 100 per cent stake in Suzuki Motor Gujarat (SMG).
The MSI board, in its assembly held on July 31, 2023, had authorized the termination of the contract manufacturing settlement with SMG and the acquisition of its shares by SMC at a value 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, considering the corporate’s future progress prospects when it envisages to have 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 total 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 each year. Shares of MSI have been buying and selling 0.08 per cent up at Rs 10,501.95 apiece on the BSE.
